KKR buys into Indonesian food business

KKR Asset Management has acquired a stake in an Indonesian food company just weeks after KKR closed Asia's largest PE fund on $6 billion.

Jakarta-based Tiga Pilar Sejahtera Food (TPSF) has agreed to sell a 9.5 percent stake to KKR Asset Management (KAM), a unit of Kohlberg Kravis Roberts, according to a joint statement.

Terms of the transaction were not disclosed.

TPSF has three business lines: food manufacturing, rice processing and distribution, and palm oil and plantation businesses. TPSF is part of TPS Group, which was founded in 1959 in Central Java and is a large player in Indonesia’s food industry. 

Rabobank International in Singapore and PT Rothschild Indonesia acted as joint advisors/arrangers to TPS Group, the statement said.

“Indonesia’s economic trajectory places it on pace to become a top 10 economy by 2030 and its consumer economy could become the third largest by 2050, trailing only China and India,” said Ridha Wirakusumah, director of KKR Asia, in the statement. 

“This is a large and attractive growth market, and we have been looking to back a consumer-related company like TPSF for quite some time.”

The investment came from a KAM-managed fund. KAM has $27.9 billion in assets under management as of March 31, according to the statement.

Earlier this month, KKR closed the largest private equity fund ever raised for Asia on $6 billion. Last year, the firm opened an office in Singapore to address Southeast Asia investments.