Affinity Equity Partners (“Affinity”), one of the largest dedicated Asian private equity firms, has fully exited its remaining 17.1% stake in PT Industri Jamu dan Farmasi Sido Muncul Tbk (“Sido Muncul”) to the controlling shareholder, the Hidayat family, for a total consideration of US$233 million, on 5 April 2024. This sale follows an earlier block placement of 4.0% completed on 1 April 2022. Following this transaction, Affinity has concluded a successful 6.5 year partnership with the Hidayat family in scaling Sido Muncul to new heights.
Established in 1951, Sido Muncul is the largest integrated herbal products and medicines brand owner and manufacturer in Indonesia, with an 84% market share in Indonesia’s herbal products market, and has been listed on the Indonesia Stock Exchange (“IDX”) since 2013.
Affinity has supported Sido Muncul to extend its market leadership of the Indonesian herbal medicines market. Together, Affinity and Sido Muncul have achieved significant milestones, including (i) institutionalization of the business, (ii) business strategy refinement, and (iii) operational efficiency improvements. Throughout Affinity’s investment, Sido Muncul successfully transformed into a professional modern consumer health company positioned for growth, with an expanded distribution network and export business.
Affinity has also supported Sido Muncul’s vision to become a holistic herbal medicines company which benefits the wider community and environment, developing a sustainability strategy and publishing a first-ever annual ESG sustainability report. In recognition of Sido Muncul’s achievements in integrating ESG, Affinity and Sido Muncul were awarded AVCJ’s “Responsible Investment Award” in 2022. Sido Muncul is also a constituent of all four ESG indices on IDX, and is one of only 30 firms selected as a constituent of the prestigious IDX ESG Leaders index.
“We are immensely grateful for the partnership, belief, and guidance provided by Affinity over the years. Affinity has been highly collaborative and dedicated to the success of Sido Muncul every step of the way, and has helped us transform the company into an institutional modern consumer health company with a clear growth strategy and runway. We are immensely proud of the accomplishments we have achieved together, which is a testament to Affinity’s investment style of partnering closely with local partners to achieve successful outcomes.” Said David Hidayat, President Director of PT Hotel Candi Baru.
“We would like to express our appreciation and gratitude to the Hidayat family and Sido Muncul team for the invaluable support and partnership throughout our investment. It has been a true privilege to witness the remarkable growth and development of Sido Muncul over the years, which is attributable to the commitment, dedication, and hard work of the Hidayat family and the entire Sido Muncul team. The Affinity team strongly believes that Sido Muncul will continue to thrive and reach new heights, and sincerely wishes Sido Muncul all the best in their next chapter of growth.” Said Benny Lim, Partner at Affinity Equity Partners and Head of Southeast Asia.
About Sido Muncul
Established in 1951, Sido Muncul is the largest integrated herbal products and medicines brand owner and manufacturer in Indonesia, with unparalleled brand equity and over 70 years of heritage. Today, Sido Muncul has a workforce of over 4,000 employees and a comprehensive portfolio of over 300 products, including its flagship product Tolak Angin.
About Affinity
Affinity Equity Partners is one of the largest independent private equity firms in Asia Pacific, investing in Asia Private Equity since 1998. Affinity has US$14 billion of assets and funds under management, and is currently investing out of Fund V, a US$6.0 billion fund. Affinity’s investment focus encompasses Asia-Pacific with an emphasis on Korea, Australia, New Zealand, Southeast Asia, and Greater China.