Investcorp has entered into a definitive agreement to acquire a majority stake in Viz Branz Holdings, a leading manufacturer of instant cereals and beverages in China and Southeast Asia, aiming to leverage growth opportunities in the expanding food and beverage industry.

Information on the Target

Viz Branz Holdings Pte Ltd. (“Viz Branz”), established in 1988, is a prominent family-owned manufacturer and distributor of leading instant cereal and beverage brands throughout China and Southeast Asia. The company's popular product lines include Gold Roast, Calsome, Royal Myanmar Tea, and Cafe 21. Headquartered in Singapore, Viz Branz employs approximately 1,300 individuals and operates manufacturing facilities in both China and Myanmar. For the fiscal year ending June 30, 2020, the company reported sales of SGD 170 million.

China represents the largest market for Viz Branz, contributing over 65% of its total revenue. Notably, the Gold Roast brand commands around 35% of the instant cereal market in Southern China, which has a population surpassing 220 million. With its established reputation and a diverse portfolio of over ten brands, Viz Branz is well-positioned in the rapidly evolving cereal market in China, projected to grow from over US $1 billion to US $1.4 billion by 2024, at an annual growth rate of 7%.

Industry Overview in the Target’s Specific Country

The food and beverage industry in China has evolved significantly over the past three decades, developing into a critical component of the national economy. As consumer preferences shift towards healthier and more convenient food options, companies in