SATS acquires Thai frozen food producer
SATS Ltd. (SATS) today announced it has entered into a conditional sale and purchase agreement to acquire 85 percent majority control of Thai company, Food City Company Limited (Food City), for an aggregate purchase consideration of approximately S$21 million (US$15.87 million).
Bangkok Ranch PLC (Bangkok Ranch), the existing owner of Food City, will retain the remaining 15 percent.
Food City’s main asset is the Pathumthani food production facility. Established in 2016, the facility is approximately 30,000 square meters, and benefits from the well-established food ecosystem in Thailand. Following the acquisition, the facility will be configured to produce 90,000 ready-to-eat meals per day.
SATS has been investing in large-scale kitchens and food technologies to increase productivity and reduce wastage. Upon completion of the Food City transaction, the company will own interests in 32 meal production facilities across Greater China, India, Indonesia, Japan, Macau, Malaysia, Maldives, Philippines, Singapore, and Thailand.
"SATS will benefit from Food City’s scale, and location in the Thai food ecosystem to supply its growing customer base across the region, from aviation to foodservice and retail,” said Kerry Mok, Chief Executive Officer, SATS Food Solutions. “This acquisition will strengthen our range of food technologies – fresh, cook-chill, ambient and frozen, to serve different customers’ needs.”
Mok added the acquisition of Food City, along with investments in advanced frozen and ambient food technology to extend product shelf-life, would allow SATS to further reduce food waste.