SINGAPORE - Catalist-listed food caterer Neo Group announced on Thursday its first major acquisition since listing in July, 2012 - the acquisition for $7.35 million of a 55 per cent stake in Thong Siek Holdings Pte Ltd - a manufacturer, distributor and retailer of surimi-based seafood products including the popular DoDo brand of fishballs.
Neo Group said that following the acquisition, TSH intends to deepen its existing footprint in Singapore and Malaysia by intensifying marketing efforts and reaching out to the Malay community through its halal product lines. It also intends to set up a marketing office in the U.K. to expand into new markets such as Europe, the Americas and Hong Kong.
Having complementary processes, the group also intends to consolidate operations to reduce costs and drive greater internal efficiencies, while having the ability to crosssell internally between businesses.
TSH will also seek to revitalise the "DoDo" brand of frozen foods and introduce a premium line of products appealing to corporate customers in order to cultivate a new customer segment reaching out to hotels, restaurants and cafes.
Said Neo Group founder, chairman and CEO, Mr Neo Kah Kiat: "We will be able to leverage on TS Group's expertise in food manufacturing to streamline and further strengthen our new central kitchen's operations for higher quality consistency while reaping economies of scale and synergies with our core businesses following the integration and streamlining of processes."
"The acquisition will also allow the Group to create new business-to-consumers income streams, expand our customer base and market segments, while giving us access to a large distribution network across 22 countries globally."
Mr Neo will assume the role of acting CEO of TSH whilst Ms Xenn Lim, general manager, corporate services of TS Group, will become deputy CEO of TSH.
It expects to commence consolidation of TSH's financials from the period ending June 30, 2015.