KUALA LUMPUR: Regional food and beverage (F&B) group Etika International Holdings Ltd is buying the Family Bakery group ' comprising Family Bakery Sdn Bhd, Daily Fresh Bakery Sdn Bhd and Hot Bun Food Industries Sdn Bhd ' for about RM18.7 million cash.
In a statement on Monday, June 7, Etika International CEO Datuk Kamal Tan said its bakery business had been identified as one of the group's potential growth drivers going forward.
"We have built a new production facility in Meru, Klang to expand our existing bakery business in anticipation of the potential growth. The proposed acquisition is in line with this strategy and we expect to derive synergistic benefits in view of its fundamental similarity with the group's existing bakery business.
"As such, we believe that we will be able to enjoy greater economies of scale in terms of our purchasing power, production know-how, and product development," he said in a statement on Monday.
The company said it had entered into a conditional sale and purchase agreement with the relevant parties to undertake the proposed acquisition. No details of the seller were released. SGX Catalist-listed Etika International is also one of the world's largest manufacturers and distributors of sweetened condensed milk.
"Together with the group's existing bakery business, we will be able to offer a more complete range of products catering to both domestic and export markets in the retail and OEM sector," Tan said.
Family Bakery's manufacturing facility is also located in Meru, Klang and produces fresh baked buns and breads which are distributed nationwide to hypermarkets, supermarkets, factory canteens, petrol stations, grocery stores and convenience shops.
In a statement on Monday, June 7, Etika International CEO Datuk Kamal Tan said its bakery business had been identified as one of the group's potential growth drivers going forward.
"We have built a new production facility in Meru, Klang to expand our existing bakery business in anticipation of the potential growth. The proposed acquisition is in line with this strategy and we expect to derive synergistic benefits in view of its fundamental similarity with the group's existing bakery business.
"As such, we believe that we will be able to enjoy greater economies of scale in terms of our purchasing power, production know-how, and product development," he said in a statement on Monday.
The company said it had entered into a conditional sale and purchase agreement with the relevant parties to undertake the proposed acquisition. No details of the seller were released. SGX Catalist-listed Etika International is also one of the world's largest manufacturers and distributors of sweetened condensed milk.
"Together with the group's existing bakery business, we will be able to offer a more complete range of products catering to both domestic and export markets in the retail and OEM sector," Tan said.
Family Bakery's manufacturing facility is also located in Meru, Klang and produces fresh baked buns and breads which are distributed nationwide to hypermarkets, supermarkets, factory canteens, petrol stations, grocery stores and convenience shops.
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