KKR Buys US$250 Million Stake in Masan’s Meat Platform

04 Apr 2017 --- The Masan Group Corporation has revealed how global investment firm KKR has begun a definitive agreement to invest US$250 million in Masan Group and in its branded meat platform, Masan Nutri-Science.

KKR’s investment is comprised of a US$100 million purchase of secondary shares of Masan Group from PENM Partners, an independent Danish private equity company, and a US$150 million primary investment in Masan Nutri-Science for a 7.5% stake. 

This is KKR’s second investment in Masan as KKR previously invested US$359 million in Masan Consumer.

“Masan Group is a world-class partner in Vietnam. We admire and respect their capabilities to strategically transform businesses by driving change to serve 90 million consumers with quality and affordable daily products. We have witnessed them develop a seasonings company into a US$2 billion diversified consumer group and look forward to again backing Masan as they execute their growth plans,” says Ming Lu, member of KKR and head of Asia Private Equity.

Vietnam’s US$18 billion meat sector lacks productivity and is highly fragmented; the market leader has less than 1% share which leads to consumers paying more for less. 

Masan believes that addressing this large unmet need requires increasing productivity across the entire animal protein value chain. 

In 2016, Masan completed its integrated “feed-farm-food” branded meat platform by cementing its leading position in the animal feed business, entering into pig farming and becoming VISSAN’s strategic partner. 

KKR’s global network and agriculturally experienced team will support Masan Nutri-Science as it aims to become the first integrated consumer meat platform in Vietnam.

“At Masan, we believe that value comes from serving the daily basic needs of 90 million Vietnamese consumers, allowing our people to pay less for quality products and services. In a country where daily essentials such as packaged food and beverage, fresh food (meat), and financial services take up half of the average person’s wallet share, being able to deliver value for money is meaningful to our people and society,” says Nguyen Dang Quang, Chairman of Masan Group.

“With KKR’s investment in Masan, we will be in a stronger position to deliver on our commitment to Vietnamese consumers.”

“This investment underscores our commitment to Vietnam in particular and to ASEAN generally,” said Ashish Shastry, Member of KKR and Head of KKR Southeast Asia. “Vietnam holds great opportunity with its growing economy and favorable demographic trends. KKR is committed to investing in the market by partnering with leading companies such as Masan Nutri-Science.”

As Masan Nutri-Science moves into its next stage of transformation, the company is going through some restructuring which involves Danny Le, Head of Business Development of Masan Group, stepping down as Chief Executive Officer of Masan Nutri-Science and be responsible for strategy as Vice Chairman. 

Pham Trung Lam will lead Masan Nutri-Science as Chief Executive Officer to build the company into a leading branded meat business. He was previously Head of Sales at Masan Consumer, where he was instrumental in building Masan’s national distribution network to reach 250,000 point of sales, the highest for a food and beverage company in Vietnam.

“Our team at Masan Nutri-Science are not only professionals, but are entrepreneurs who wants to transform the animal protein sector with innovation that increases productivity and brands that consumers trust and love. We have started in the feed, and I look forward to partnering with KKR to complete our story with consumer meat products,” adds Pham Phu Ngoc Trai.

The transaction is subject to customary corporate and regulatory approvals.