SINGAPORE - DKSH, a company which helps other firms expand their business, on Friday (Dec 21) said it has inked a deal to acquire the consumer goods distribution business of Auric Pacific in Singapore and Malaysia for 160 million Swiss francs (S$221 million).
Auric is an investment holding firm involved in various consumer businesses in the Republic, such as food manufacturing. It owns the Food Junction foodcourts and Delifrance cafes. The company delisted from the Singapore Exchange last year.
With this move, DKSH said it will increase its exposure to the high-margin food service business and expand its presence in the consumer goods industry in Asia.
Auric Pacific's distribution business helps companies dealing in fast-moving consumer goods to expand in Singapore and Malaysia.
Its product portfolio includes more than 150 brands, and the company serves the food service channel for hotels, restaurants and cafés. It also owns two consumer brands, SCS and Buttercup, including production.
Auric Pacific distributes products to about 4,400 customers in Singapore and Malaysia. The consumer goods distribution business of Auric Pacific generates net sales of around 185 million francs, with an operating profit of about 14 million francs.
DKSH expects the acquisition to be immediately earnings accretive. The existing management team of the business and employees will join DKSH and be part of DKSH's business unit under consumer goods.
Andy Adhiwana, group CEO of Auric Pacific, said: "We have found a good home for our management team, who will be transferring to DKSH, while we focus on our strategy to acquire and grow strong consumer brands."
Subject to conditions and regulatory approvals, the transaction is expected to be completed in the first half of 2019.