PHI Group, an American private equity investment firm focusing on acquisitions and investments has bought a majority stake in northern Vietnam-based agriculture company Hoang Minh Chau Hung Yen LLC (HMC) in a cash and stock transaction, according to a press statement.
As per details regarding the Memorandum of Agreement, PHI Group will be acquiring a minimum of 51 percent interest in Hoang Minh Chau Hung Yen LLC, a Vietnamese firm located in Chi Tan Village, Khoai Chau District.
Well known for its turmeric fields, Chi Tan, however, has only been involved in the processing business in the past three years and is yet to build a strong branding. Founded in 2011, HMC is among a dozen family businesses in the area that are involved in growing and buying raw materials from farmers for processing.
HMC specialises in cultivating and processing turmeric (curcuma longa) and currently manages a 600-hectare raw material field in Hung Yen province. Aside from growing turmeric, the company also buys harvested crops from other local farmers for its turmeric processing plant.
At present, the Vietnamese turmeric manufacturer produces 5 to 7 tonnes of turmeric powder every year. Additionally, it aims to extend its capacity to 15 tonnes in the following years.
It produces turmeric powder for food, healthcare and beauty supply and also contracts with the Vietnamese Institute of Industrial Chemistry to process curcuminoids from turmeric for various usages.
This acquisition also comes as part of PHI Group’s plan to apply the proprietary enhanced bioavailable nutrients and natural symbiotic immune system to grow organic turmeric in Hung Yen province, Vietnam and at the same time utilise HMC’s expertise and experience to grow premium organic turmeric in the United States for Abundant Farms, a PHI Group’s agricultural subsidiary.
“Since traditional turmeric rhizomes in Chi Tan Village, Hung Yen Province are among the very best in the world in terms of size and curcumin contents, we believe PHI Group’s Abundant Farms can greatly benefit from using these seed roots and HMC’s expertise and experience in our turmeric farming program,” commented Henry Fahman, the chairman and CEO of PHI Group.
PHI Group focuses mainly on acquisitions and buyouts in selected industries, investing in special situations and provides corporate and project finance services, including M&A advisory and consulting services for other companies. Most of its portfolio are agricultural companies and projects.
“We look forward to working with PHI Group to utilize its enhanced bioavailable nutrients and natural symbiotic immune system to grow premium organic turmeric in Hung Yen Province to provide better quality and yields for our turmeric crops,” said Dong Quang Hoang, the Director of HMC.
By Vivian Foo, Unicorn Media