KKR to acquire 9.5% stake in Indonesia’s Tiga Pilar Sejahtera Food

US private equity firm Kohlberg Kravis Roberts (KKR) has entered into an agreement to acquire a 9.5% stake in Indonesian snack food company Tiga Pilar Sejahtera Food (TPSF) for an undisclosed amount.

This agreement marks the first deal for KKR in Indonesia.

TPSF, which is majority owned by TPS Group, is a leading food business in Indonesia and its well-known products and brands include Taro Snack, Mie Kremezz, Ayam Dua Telor, Superior, Tanam Jagung, Gulas Candy, and Ayam Jago Rice.

KKR, which manages over $78bn in assets, plans to finance the deal through its KKR Asset Management unit.

The investment firm recently completed its second Asia fund of $6bn, which is the largest ever raised for investment in the region.

With the acquisition, which is expected to be completed in August, KKR will become TPSF’s second largest shareholder after TPS and will have the authority to appoint a member of the board of commissioners.

TPS Group chief executive officer Joko Mogoginta said: "With a strong, long-term partner in KKR, we have a shareholder who not only has deep expertise in the food and retail industry but a partner who shares our vision and will be able to help us grow TPSF as a leading company in foods and food-related businesses."

KKR Asia director Ridha Wirakusumah said that Indonesia’s economic trajectory puts it on track to become a top ten economy by 2030 and its consumer economy could become the third largest by 2050, behind China and India.

"This is a large and attractive growth market, and we have been looking to back a consumer-related company like TPSF for quite some time," Wirakusumah added.

Rabobank International Singapore and Rothschild Indonesia served as joint advisers to TPS Group for the transaction.

TPSF is a food and food-related businesses company operating in three business lines – food manufacturing (TPS Food), rice processing and distribution (TPS Rice), and palm oil and plantation businesses (TPS Agro).