DKSH buys Auric Pacific for RM480.9mil


  • Business
  • Saturday, 22 Dec 2018

the proposed acquisition is expected to contribute positively to the earnings of the enlarged DKSH group with the expected income from the Auric Pacific group in the near future.

KUALA LUMPUR: DKSH Holdings (Malaysia) Bhd is buying Auric Pacific (M) Sdn Bhd from its Singapore shareholder for S$157.67mil (RM480.9mil) cash consideration as it seeks to expand its services.

DKSH, which is involved in the fast moving consumer goods, said in a filing with Bursa Malaysia yesterday it was acquiring the company from Singapore-based Auric Pacific Group Ltd. Auric distributes chilled and frozen products in Malaysia.

DKSH intends to fund the proposed acquisition through its own funds and bank borrowings.

“Auric is one of the established player in the distribution of chilled and frozen products and in the food services channel in Malaysia.

“The strengths of Auric are complementary to DKSH’s existing FMCG market expansion services,” it said.

DKSH said the purchase was in line with its horizontal integration strategy to make further strategic investments in DKSH’s market expansion services.

This represents a gateway for DKSH to further increase its product portfolio which creates a synergy effect and is expected to generate positive earnings to the company.

“As both DKSH and Auric are involved in similar business of FMCG, the proposed acquisition will create enhanced scale and synergies for DKSH through, amongst others, revenue synergies as DKSH is able to grow its FMCG business.

“In addition, DKSH will be able to acquire Auric’s business of manufacturing melange, which will create additional income stream for DKSH group of companies,” it said.

Auric Group is a Singapore incorporated and its subsidiaries are involved in a diverse range of businesses, which includes the distribution of FMCG, food manufacturing and retailing, restaurants as well as food court management.


Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 7
Cxense type: free
User access status: 3

Business , DKSH

   

Across The Star Online