KKR has acquired an approximate 12.64% stake in PT Nippon Indosari Corpindo Tbk.
OREANDA-NEWS. Leading global investment firm KKR today announced that KKR has acquired an approximate 12.64% stake in PT Nippon Indosari Corpindo Tbk. ("Indosari" or the "Company") (IDX stock code: ROTI), Indonesia's leading mass market bread company.
KKR makes its investment from its Asian Fund III. KKR's investment in Indosari is the firm's third in a leading Indonesian consumer company in less than 18 months, following its investments in agri-company Japfa Comfeed and on-demand mobile platform GO-JEK.
Commenting on the investment, Ms. Wendy Yap, Founder, President Director & Chief Executive Officer of Indosari, said, "We are very pleased to welcome KKR as an investor in Indosari. We believe Indosari will benefit from KKR's knowledge and experience in the consumer sector and look forward to drawing on their longstanding expertise and full support to accelerate the growth of the business and position the company for long-term success."
Indosari is a leader and pioneer in Indonesia's mass-produced, branded bread segment. Established in 1995, the Company has 10 manufacturing facilities across eight cities across the country. Marketed under its own Sari Roti brand, Indosari produces and sells a wide range of bread and cake products which have become a recognized staple in many Indonesian homes. Indosari's products are distributed across its extensive network of 67,000 points of sale across both modern trade and general trade channels.
KKR's investment in Indosari is being made at a time when Indonesia has seen consumption as a percentage of GDP rise to 58%. KKR forecasts Indonesia's GDP-per-capita to grow significantly in the near term, in conjunction with accelerated urbanization trends and a population of 261.1 million of which half is under the age of 30. These emerging middle class consumers are already demanding higher-quality products and value-added services which should drive the long-term growth of sectors such as branded consumer products, including those produced by Indosari.
Jaka Prasetya, Managing Director at KKR Asia, said, "Indosari is KKR's third investment in a leading consumer goods company in Indonesia, underscoring our strong belief in the continued growth of the country's consumer sector. KKR is focused on partnering with strong Indonesian entrepreneurs to provide assistance and capital to home-grown, local champions like Indosari. We believe that, with its focus on delivering premium, high-quality products to consumers, Indosari is well-positioned to capture opportunities across Indonesia and overseas. We look forward to working alongside Ms. Wendy Yap and the whole Indosari team to build on the company's success."
About PT Nippon Indosari Corpindo Tbk.
PT Nippon Indosari Corpindo Tbk. (IDX: ROTI) is a bread company established in 1995, with its brand Sari Roti, that is committed to continuously produce and distribute products which are halal, high quality, hygienic and affordable to all Indonesian consumers. As part of the commitment to the consumers, the Company implements the ISO standards of Food Safety Management System and Quality Management System. The Company operates 10 factories located in Bekasi (Cikarang and Cibitung), Pasuruan, Semarang, Medan, Palembang, Makassar, Cikande, and Purwakarta, with the total daily production capacity of more than 4 million pieces of bread. All Sari Roti products are registered in Indonesia National Agency of Drug and Food Control (NA-DFC) and certified halal by the Indonesian Council of Ulama (MUI). In 2016, the Company and Monde Nissin Corporation entered into an agreement to establish a joint venture company called Sarimonde Foods Corporation that is expected to commence operation in early 2018.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit and, through its strategic partners, hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside its partners' capital and provides financing solutions and investment opportunities through its capital markets business. References to KKR's investments may include the activities of its sponsored funds.