Abstract
Kohlberg Kravis Roberts & Co. agreed to invest $200 million in sauce and food maker Masan Consumer Corp., marking the largest investment to date in Vietnamby a private equity firm.
Kohlberg Kravis Roberts & Co. agreed to invest $200 million in sauce and food maker Masan Consumer Corp., marking the largest investment to date in Vietnamby a private equity firm.
New York-based KKR has been looking to back companies throughout Southeast Asia with exposure to the region's emerging affluent class and opened an officein Singapore last year to aid it in its search.
More than 90% of Vietnamese households own a Masan Consumer product, such as fish sauce, instant noodles or instant coffee. The company's sales have increased from $31 million in 2007 to approaching $500 million forecast for last year. Its third-quarter profit rose 50% to about $36 million from a year earlier.
KKR's $200 million investment is in addition to the $159 million it invested in Masan Consumer in April 2011.
The firm will have two seats on the company's board.
"Doubling our investment in less than two years demonstrates our strong conviction in Vietnam's growth story," said Ming Lu, who heads KKR's Southeast Asia operations.
Masan Consumer Chief Executive Truong Cong Thang said KKR's investment will help the Vietnamese company diversify into other fast-expanding consumer goods categories.
KKR's investment comes as Vietnam economy's climbed last year at its slowest pace in 13 years, while a rising ratio of bad debt in the country has deterred banks from lending.
Despite the slowdown, Vietnam's Ministry of Planning and Investment said last week that it is targeting total foreign direct investment pledges of $13 billion to $14 billion this year, compared with $13.01 billion last year.
KKR's $200 million investment into Masan Consumer would be the largest private equity investment in