New York-based global investment firm Kohlberg Kravis Roberts & Co. (KKR) has taken a 10 percent interest in Masan Consumer Corp., a leading producer and distributor of fast-moving consumer goods (FMCG) in Vietnam.

Valued at $159 million, the KKR investment is described in financial circles as the largest private equity transaction so far in Vietnam. It is the NYSE-listed KKR's first such investment in Vietnam and its fourth in Southeast Asia.

Masan Consumer, which started operations in 2000, is part of Masan Group, one of Vietnam's largest private business enterprises with operations in consumer staples, financial services, and natural resource development.

Currently the market leader in fish, soya and chili sauce and the second largest producer of branded instant noodles in Vietnam, Masan Consumer reported total sales revenue of VND5,690 billion (about US$272 million) for the year 2010.

Following KKR's entry, Masan Consumer will issue 14 million ordinary shares to KKR and decrease Masan Group's stake from 86.6 percent to 78.0 percent.

Goldman Sachs was advisor to Masan Group for the transaction.

In a press statement, Masan Group CEO Madhur Maini noted that the KKR investment "validates" the Vietnamese company's recent "consumer strategy."

"We welcome KKR as a partner to assist us in achieving this objective. In addition, we view the next two years as transformational for the group and continue to build a war chest for strategic M&A," he said.