Hormel in talks to acquire stake in GarudaFood

Hormel Foods Corp. is hammering out the details to acquire a minority stake in Indonesia’s top snack-food maker PT GarudaFood Putra Putri Jaya from private equity firm CVC Capital Partners for a few hundred million dollars.

The US food giant has emerged as the likeliest buyer of the GarudaFood stake after outbidding rivals.

Talks are at an advanced stage.

The Austin, Minnesota-based Hormel has a portfolio that includes SPAM, Skippy, and Planters, and generates over $11 billion in annual revenue,

Its shares have slipped about 8 percent this year, valuing the firm at about $24.6 billion.

GarudaFood’s products include peanuts, potato chips, wafer sticks, crackers, cheese, biscuits, and milk drinks for children. Its products are sold in more than 20 countries, with a focus on Southeast Asia, China, and India.

GarudaFood has a market value of about $1.2 billion,

CVC invested about $150 million in GarudaFood back in 2018.