Carlyle Group Buying $200M Stake in GarudaFood

The Carlyle Group is closing in on a 25% stake in Indonesian consumer firm GarudaFood, Reuters said. The $200 million stake will mark the firms first direct investment in Indonesia. GarudaFood sells instant food, peanuts and other snacks globally. The proposed deal values the company at about $800 million, Reuters said.

(Reuters) – Private equity firm Carlyle Group is close to buying a 25 percent stake in Indonesian consumer firm GarudaFood for about $200 million, sources with direct knowledge of the plan told Reuters on Sunday.

The deal will mark Carlyle’s first-ever direct investment in Indonesia, a country that has seen increased interest from buyout firms. Carlyle outbid Japanese beverage firm Suntory, sources added. The stake is being sold by Indonesia’s family business Tudung Group.

Sources said Carlyle has been identified as the preferred bidder, though no formal agreement has yet been signed between the buyer and seller.

GarudaFood sells instant food, peanuts and other snacks globally and the deal will value the whole company at about $800 million.

Barclays Capital , which is the sale adviser, and Suntory declined comment. Carlyle did not return calls seeking a response. Tudung Group executives did not respond to phone calls and text messages seeking comment.

The sources declined to be identified as the deal is not yet public.

Private equity deals in Indonesia, Southeast Asia’s biggest economy, have picked up in the past year as intense competition in hot markets such as China and India encourages global buyout firms to push into fast-growing emerging markets in Southeast Asia.

Rival buyout firms TPG Capital and CVC have already snapped up finance, resource and consumer plays in Indonesia.

(Addition reporting by James Topham; Reporting by Janeman Latul and Stephen Aldred; Editing by Denny Thomas and Alex Richardson)