Ekuiti Nasional Berhad (Ekuinas) has divested its 100 percent equity in a leading manufacturer of premium halal meat-based products, Primabaguz Sdn Bhd (PrimaBaguz) to Johnsonville International LLC (Johnsonville) based on an Enterprise Value of RM175.0 million.
This strategic acquisition of PrimaBaguz will enable Johnsonville to pursue its ambitions in setting up a halal food hub within the region.
“Our investment in PrimaBaguz allows us to further expand our international footprint into Southeast Asia, particularly Malaysia. With the country’s strong market share in the halal food manufacturing industry, we look to use PrimaBaguz’s capabilities to further penetrate markets looking for premium meats, both within Malaysia and in growing markets throughout Asia and the Middle East,” said Michael Suprick, President of Johnsonville International.
“Ekuinas’ value creation plan (VCP) for PrimaBaguz has resulted in a 75.0% growth in revenue since our entry in 2013, primarily driven by the increase in its manufacturing capacity and product range,” commented Syed Yasir Arafat Syed Abd Kadir, Chief Executive Officer of Ekuinas.
Specific initiatives within the VCP include capacity improvements and operational enhancements, diversification of the manufacturing lines to cater to product customisation required by various clients, strategic supplier partnerships with popular fast food chains, as well as strengthening its management team,” he added.
The sale attracted significant foreign direct investment and generated a Gross Internal Rate of Return (IRR) of 22.1 percent and money multiple of 3.8 times the capital invested, which is part of Ekuinas’ careful portfolio strategy that is in line with the current market condition. With this, it will bring the Company’s total realisation proceeds to RM3.1 billion
Johnsonville is one of the leading processed meat companies in the U.S. with market-leading products for breakfast, dinner and snacking occasions. The company produces sausages, meatballs and other protein items for the retail, wholesale and foodservice markets.