Henry Kravis and George Roberts - Photo by KKR

JAKARTA (TheInsiderStories)– U.S. Leading global investment firm KKR & Co. L.P. (NYSE: KKR) today announced that has acquired an approximate 12.64 percent stake in PT Nippon Indosari Corpindo Tbk (IDX: ROTI), Indonesia’s leading mass market bread company for US$74 million.

KKR makes its investment from its Asian Fund III. KKR’s investment in Indosari is the firm’s third in a leading Indonesian consumer company in less than 18 months, following its investments in agri-company PT Japfa Comfeed Indonesia Tbk (IDX: JPFA) and on-demand mobile platform GO-JEK.

Commenting on the investment, Wendy Yap, Founder, President Director & Chief Executive Officer of Indosari, said, “We believe Indosari will benefit from KKR’s knowledge and experience in the consumer sector and look forward to drawing on their longstanding expertise and full support to accelerate the growth of the business and position the company for long-term success.”

Photo by Nippon Indosari Corporindo

Nippon Indosari is a leader and pioneer in Indonesia’s mass-produced, branded bread segment. Established in 1995, the Company has 10 manufacturing facilities across eight cities across the country.

Marketed under its own Sari Roti brand, Indosari produces and sells a wide range of bread and cake products which have become a recognized staple in many Indonesian homes. Indosari’s products are distributed across its extensive network of 67,000 points of sale across both modern trade and general trade channels.

KKR’s investment in Indosari is being made at a time when Indonesia has seen consumption as a percentage of gross domestic product (GDP) rise to 58 per cent. KKR forecasts Indonesia’s GDP-per-capita to grow significantly in the near term, in conjunction with accelerated urbanization trends and a population of 261.1 million of which half is under the age of 30.

These emerging middle class consumers are already demanding higher-quality products and value-added services which should drive the long-term growth of sectors such as branded consumer products, including those produced by Nippon Indosari.

Jaka Prasetya, Managing Director at KKR Asia, adding, “Indosari is KKR’s third investment in a leading consumer goods company in Indonesia, underscoring our strong belief in the continued growth of the country’s consumer sector. KKR is focused on partnering with strong Indonesian entrepreneurs to provide assistance and capital to home-grown, local champions like Indosari.”

Nippon Indosari in a press statement released on Thursday (26/10) said KKR bought the company share at a price of Rp1,275 per share. KKR’s investment makes it one of the largest shareholders in Indosari in addition to PT Indoritel Makmur Internasional Tbk (IDX: DNET), controlled by the Salim Group, Bonlight Investments Ltd., holding company of the Yap family and Pasco Shikishima Corporation, owned by the Morita family.

 

Writing by Linda Silaen, Email: linda.silaen@theinsiderstories.com