Navis Capital Partners Announces Investment into Dan-D Foods Group

Kuala Lumpur, Thursday, 21 July 2022 – Navis Capital Partners (“Navis”), an Asia-based private equity firm, has completed an investment in Dan-D Foods Group (“Dan-D Foods” or the “Company”), a leading producer of healthy nut snacks with its core sourcing and processing facilities located in Vietnam.

The global snack industry is a US$605 billion market with healthy snacks accounting for US$81 billion. It is expected to reach US$108 billion in sales by 2027, supported by increasing consumption of healthy food products. Moreover, nuts, seeds, and trail mixes are the fastest growing category with 7% growth per annum, driven not only by disposable income growth, but also by cultural dietary preferences towards healthier lifestyles and strong product innovation. China, one of Dan-D Foods’s core markets, is the largest and fastest growing nut snack market in the world with a market size of US$13 billion, growing at 12% per annum. Vietnam is the world’s 4 th largest cashew grower and the largest exporter of cashew kernels accounting for 60-65% of global exports.

Navis will assist Dan-D Foods in accelerating growth through new production capacity expansion and ramping-up, further penetration into existing export markets (e.g. China, Canada, USA and Japan), as well as new markets and customer acquisition. The additional growth capital will help unlock working capital constraints and allow Dan-D Foods to service additional businesses while taking in more orders.

In addition, the investment into Dan-D Foods will accelerate the development of new value-added products as well as other higher value products. The investment will also support Dan-D Foods to further strengthen its branding and digital marketing capabilities, execute M&A opportunities, and improve ESG practices including social projects to support cashew farmers and improve productivity for cashew farming in Vietnam and elsewhere.

Tabongkod Peunchob, a Partner at Navis Capital, commented: “Prompted by the pandemic, healthy food and snacks are quickly becoming the trend in today’s world, as consumers shift towards healthier lifestyles and diet choices. We are impressed by the Dan-D Foods management’s experience and strong work ethic that has successfully delivered consistent sales and profitability growth over many years. We are very excited to partner with Dan-D Foods Group and look forward to working closely with Mr. On and his team to further develop and grow the Company.”

Dan On Khuong, the founder of Dan-D Foods Group, commented: “We are absolutely delighted to welcome Navis Capital as our new partner. Starting out from the heart of Chinatown in Vancouver, BC in 1989 with only a 4,000 sq. ft. warehouse and several staffs, Dan-D Foods Group is now a global cashew processor and distributor with over US$200 million in revenue, having grown quite remarkably at a 20% CAGR for the past 6 years. The Company’s turning point is when, encouraged by my late stepfather, George Kavanagh, I returned to my birthplace in Vietnam to establish our first cashew shelling business, embracing a conviction in the future of the global market for valued-added cashew products. Today, we ship thousands of containers of high-quality cashews and mixed nuts annually to more than 20 countries under the reputable brand of Dan-D-Pak. Together with Navis as a partner, I look forward to offering our customers with even better and more innovative nut-based products, and believe that this strategic move will accelerate further our outstanding growth and ambitious plans.”

About Navis Capital Partners Limited

Founded in 1998, Navis manages approximately US$5 billion in private equity capital and focuses on investments primarily in Southeast Asia and its adjacent economies. Navis contributes both capital and management expertise to well-positioned companies with the objective of directing strategic, operational and financial improvements. Navis has one of the largest private equity professional teams in Asia, comprising 60 individuals, supported by 30 administrative staff, in six offices across the region. Since inception, Navis has completed over 90 control transactions, of which over 60 have been exited, and consistent with Navis investment strategy, almost all these exits have been to trade buyers.

About Dan-D Foods Group

Founded in 1989, Dan-D Foods Group is a leading producer of branded, ready-to-eat, and healthy nut snacks in the industry. The Company distributes its products to over 20 countries under its own 3 brands and OEM, with a large long-term customer portfolio of over 500 clients globally, including Walmart, Loblaws, Aeon, etc. Its products include salted, unsalted, flavoured cashews, almonds, pistachios, mixed nuts, trail mix, energy bar, chips & snacks, and other dried fruits and products. Dan-D Foods Group has 6 manufacturing facilities (4 in Vietnam, 1 in Canada, and 1 in the US), and sales offices in Hong Kong, China, and Taiwan.

https://www.danonfoods.com/

Contact details: Navis Capital Partners

Nicholas Bloy
+60 12 322 5493
nbloy@naviscapital.com