Creador gears up for second Indonesia deal

The Malaysia-based private equity firm will buy Indonesian foods business Simba Indosnack Makmur as the fourth investment from its debut fund.

Creador has entered into an agreement to acquire foods business Simba Indosnack Makmur from family-owned Indian conglomerate the Godrej Group, according to a company statement. The firm did not disclose the financial details of the transaction, but said in 2012 Simba generated net sales of about $22 million. 

The firm, which is led by ex-ChrysCapital managing director Brahmal Vasudevan, has now made two investments in Indonesia, Southeast Asia’s most popular private equity market. Last July, the firm anchored the $228 million July IPO of MNC Skyvision in Indonesia alongside Saban Capital. 

Vasudevan said in a statement: “This acquisition demonstrates our commitment to making growth investments in Indonesia, and reflects our strong capabilities in both Indonesia and India. PT Simba has a number of leading Indonesian brands in the cereals and snacks business with excellent growth prospects.”

The Godrej Group acquired Simba in 2010 as a non-core business. Naveen Gupta, chief operating officer of the Godrej Indonesia business, explained: “Under [Godrej], our foods business did not have the benefit of a global innovation platform like we have in our other categories of household insecticides and air care. This divestment will now enable us to focus on our key brands.”

In December, Creador closed its maiden fund on $140 million, Private Equity International reported earlier. The firm expects to have invested 75 percent of the fund by March 2013, less than 18 months after its launch, and is expected to deploy 50 percent of its capital in Indonesia, and 25 percent in both Malaysia and India.