Aug 15, 2011

Tiga Pilar buys Taro Snack from Unilever

PT Tiga Pilar Sejahtera Food Tbk (AISA) has agreed to acquire production facility and brand of Taro Snack from PT Unilever Indonesia Tbk (UNVR) at the consideration price of more than Rp200 billion. Tiga Pilar will acquire production facilities located in Gunung Putri, Bogor, and Meda, North Sumatra.
Corporate Secretary Yulianni Liyuwardi at Tiga Pilar said Unilever is considering that Taro Snack is not a strategic product. "This is different from us that produces snack," she said as quoted by Investor Daily today.
According to her, Taro Snack will be accretive acquisition for Tiga Pilar as the brand will scout middle to up class consumers, while Tiga Pilar's products are maintain its middle to low class consumers. Tiga Pilar is a maker of instant noodle with its brand of Chicken with 2 Eggs (Ayam 2 Telor), Superior, Kremezz noodle, and Gulas candy.  
Yulianni said the acquisition will positively contribute revenue to Tiga Pilar next year. By end of this year, Tiga Pilar is still under agreement with Unilever. "Starting January 2012, Taro Snack will contribute revenue to us," she said.

Disclosure: No position at the stock mentioned above.

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