Filipino group Monde Nissin eyes more Australian food takeovers

FILIPINO food powerhouse Monde Nissin will look at further acquisition opportunities in Australia after three big deals in the space of the past six months.

FILIPINO food powerhouse Monde Nissin Corporation will look at further acquisition opportunities in Australia after three big deals in the space of the past six months, culminating in today’s acquisition of Menora Foods.

The group’s Australian arm Monde Nissin Australia will acquire Menora Foods with the intention to build on the existing business and to continue its current growth trajectory. Monde Nissan operates in 40 countries.

The purchase price was reportedly around $55 million, but neither Menora or Monde Nissan would confirm that.

Menora markets more than 1500 products and generates 50 per cent of its revenues from supplying the independent grocery sector, distributing brands such as Peckish rice snacks, Cobram Estate olive oil, Wattle Valley cheeses and dips, and Maille mustard. It has also moved into chilled meals and the beverage market through a deal with Saxby’s soft drinks.

“Being able to take premium brands to Asia, Australia has a good aspect to that. Some things we see as a natural fit. We will continue to look at other opportunities. I don’t think we are finished yet. We want to be a sizeable and relevant player in the Australian market,” Chris O’Sullivan, MD Monde Nissin Australia, told The Australian today.

“And to take those Australian products international. Having more of a distribution arm in Australia through Menora is useful.”

He said the interest of big foreign players like Monde in Australian assets was a “positive story in terms of Australian manufacturing”.

“As Australians are jumping out of manufacturing, there are people wanting to invest in it,” he said.

Henry Soesanto, executive vice president of Monde Nissin Corporation, visited Australia late last year to inspect Menora’s facilities as formal due diligence on the acquisition commenced.

Monde’s key brand in its home market of the Philippines is the Lucky Me! instant noodle label.

The company plans to sell Menora brands through the Lucky Me distribution network, and into Thailand and Indonesia.

Monde made its first foray into the Australian food manufacturing market with the acquisition of dip producer Black Swan last year for a reported $115m. It followed up with the purchase of the Nudie juice group earlier this year.

“Nudie is a great brand with a great culture and we are very happy to have it within our stable,” Mr O’Sullivan said.

“We are investing in successful businesses. Our approach is to be respectful and supportive of the businesses. They are where they are because of the people and the brands and because they are growing. That is the important piece for us going forward — that we maintain a respectful and supportive approach to the businesses. They are successful, they are growing and there are great brands,” Mr O’Sullivan said.

He said family businesses fitted with Monde Nissan “very well culturally”.

“That is an important thing. A family like culture supports that style,” Mr O’Sullivan said.

Menora was established in Melbourne in 1967 as Menora Gourmet Products and the business was bought by Ely Schachna 10 years later. He retired from the business in 2012, handing over the reins to his son, Sam. One of the founders, Daniel Gluck, remains a 25 per cent shareholder

The Schachna and Gluck families will sell their stakes to Monde in the deal, which will close at the end of this month.

Mr Schachna said while he would step down as CEO, he would assist with the transition and remain an adviser to the board of Monde Nissan and the new Menora management team.

He said the deal was a testament to his family’s 50-year ownership of the business and that Monde presented the right cultural fit to take the business onto the next step in its history.