DKSH to acquire distribution business of Auric Pacific in Singapore and Malaysia
24th December 2018
DKSH, an established Market Expansion Services provider with a focus on Asia, has signed an agreement to acquire the consumer goods distribution business of Auric Pacific Group Limited in Singapore and Malaysia.
Auric Pacific's distribution business is a Market Expansion Services provider of fast moving consumer goods in Singapore and Malaysia. The product portfolio includes more than 150 brands. The company also serves the food service channel for hotels, restaurants and cafés and owns two consumer brands (SCS and Buttercup) including production. With around 420 specialists, the Market Expansion Services provider distributes products to some 4,400 customers in Singapore and Malaysia.
The consumer goods distribution business of Auric Pacific generates net sales of around CHF 185 million with an operating profit (EBIT) of approximately CHF 14 million. DKSH is acquiring 100% of this business in Singapore and Malaysia for a consideration of around CHF 160 million.¹ DKSH expects the acquisition to be immediately earnings accretive. The existing management team of the business and employees will join DKSH and will be part of DKSH's Business Unit Consumer Goods.
Stefan P. Butz, CEO of DKSH, commented: “With the value-accretive acquisition of the distribution business of Auric Pacific, DKSH expands the high-margin and fast-growing food services business in Singapore and Malaysia. At the same time, we strengthen our presence in the fast moving consumer goods industry in Asia. We are looking forward to welcoming the new employees to the DKSH family.”
Dr. Andy Adhiwana, Group CEO of Auric Pacific, said: "We are pleased that DKSH recognizes the strength, depth and quality of our consumer distribution business. I am heartened that the agency brands that we have nurtured across so many decades will now go even further as part of a larger entity. 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.”
Closing of the transaction is expected in the first half of 2019 and is subject to certain conditions and regulatory approvals.