The Tan brothers, Tan Soo Kuok and Tan Lee Kok, who founded Munchy Food Industries Sdn Bhd (Munchy’s) and grew it to become the top biscuit maker in Malaysia cashed out on 8 June 2018 to one of Asia’s leading private equity fund CVC. The amount was not disclosed but a report in The Star daily mentioned a possible sum of RM1.1 billion. The Tan brothers own 70% of Munchy’s while another investor owns 30%. CVC, established in 1981, manages $82.4 billion of assets and has a global network across Europe, the Americas and the Asia Pacific region. Its Asia IV fund raised $3.495 billion in 2014.

Munchy’s started in a rented factory in 1991 producing wafers, wafer sticks and biscuits. In 1993 a brand new factory was set up in Batu Pahat and Munchy’s road to success began. New products Lexus, Manchini and Muzic were launched and went down well with local consumers. Munchy’s Crackers, Choc-O, Oat Crunch, Captain Munch and assorted biscuits are now the mainstay of the company’s brands. Besides founders Soo Kuok and Lee Kok, their younger brother, CK Tan was roped in to join the family business after returning from the USA and later became the CEO of the company. A sister and another two younger brothers are also in the business. Their father,Tan Hwa Teck, founded Hwa Tai Industries in 1962, and the boys grew up in a biscuit factory environment. So it is not surprising that after Tan Hwa Teck exited Hwa Tai in the 1990s that his sons should venture into the same line of business on their own.

Munchy’s moved to Kuala Lumpur to strengthen its brand in 2002. The company’s range of products were exported to more than 50 countries. In 2011 the brothers invested in a $12 million factory in China for its growing market there. According to Nielsen Retail Index Corporate Value Share (March 2017), Munchy’s share of the local RM1.044 billion biscuit industry in 2017 was 21.5%. In 2018, the brothers sold out to CVC.

Read more:

1. CVC. Press Release. 12 June 2018. CVC Asia Fund IV acquires 100% stake in Munchy Food Industries Sdn Bhd. www.cvc.com
2. The Star. 18 April 2018. CVC close to buying Munchy Group for RM1.1b. www.thestar.com.my
3. CVC. About us. www.cvc.com/private-equity/asia
4. The Star. Leong Hung Yee. 1 December 2008. Munchy’s a dream come true for Tan Brothers. www.thestar.com.my
5. The Edge Malaysia Weekly. Wong Ee Lin. 28 November 2016. EY Entrepreneur of the year : Munchy’s expansion during tough times yields returns. www.theedgemarkets.com
6. About us. Our History. www.munchys.com
7. >The Star. 26 May 2003. Siblings follow in father’s footsteps. www.thestar.com.my