Global investment firm KKR, through its Asian Fund II, has reached an agreement to invest US$250 million in Masan Group Corporation and its branded meat platform Masan Nutri-Science.

Masan Group announced on Monday that this is KKR’s second investment in the Masan Group after its two-round financing in Masan Consumer worth a combined $359 million in 2011 and 2013. 

Last year, KKR divested its entire holding in Masan Consumer to the Vietnamese group.

The latest transaction includes a $100 million purchase of secondary shares of Masan Group from PENM Partners and a $150 million primary investment in Masan Nutri-Science for a 7.5 per cent stake, Masan Group said in the statement.

The Danish private equity firm, through its PENM II, is Masan’s biggest foreign stakeholder with a 5.3 per cent holding worth around $126 million.

Commenting on PENM’s $100 million sales of Masan shares to KKR, Hans Christian Jacobsen, managing partner of PENM, said, “Masan has been PENM’s most successful investment in Viet Nam and we look forward to continue partnering with them through our other funds and serving on their board of directors.”

According to Masan, Viet Nam’s $18 billion meat industry lacks productivity and is highly fragmented which lead to consumers paying more for less. 

The company is aggressively expanding in the animal feed and meat industry.

In 2015, Masan bought into two major animal feed makers, Vietnamese-French cattle feed firm Proconco and Agro Nutrition Joint Stock Company (Anco) to form Masan Nutri-Science Co Ltd, making it the second largest animal feed manufacturer.

In 2016, Masan completed its integrated (feed-farm-food) branded meat platform by entering into pig farming and becoming meat processor Vissan’s strategic partner.

The agreement with KKR which has significant agricultural experience is expected to hep Masan Nutri-Science accelerate its strategy to become the first integrated consumer meat platform in Viet Nam.

“This investment underscores our commitment to Viet Nam in particular and to ASEAN generally,” said Ashish Shastry, a member of KKR and head of KKR Southeast Asia.

“Vietnam holds great promise with its growing economy and favourable demographic trends. KKR is committed to investing in the market by partnering with leading companies such as Masan Nutri-Science.”

The transaction is subject to customary corporate and regulatory approvals. 

VNS