Tuesday, July 20, 2010

Etika buys M?sian milk companies for RM90m

KUALA LUMPUR: Singapore-based Etika International Holdings Ltd is acquiring Susu Lembu Asli (Johor) Sdn Bhd (SLAJ) and Susu Lembu Asli Marketing Sdn Bhd (SLAM) for RM89.5 million cash, as part of its expansion plan to generate a new revenue stream.

Its CEO Datuk Kamal Tan said the acquisition was essential for the group to maintain the growth momentum of its dairies division.

"This will serve as a strategic platform for Etika to gain a foothold into the larger RTD (ready-to-drink) dairy segment through a wider range of healthier product offerings under established brands which have gained wide market acceptance in Malaysia," he said in a statement on Tuesday, July 20.

He said the group's dairies division made its first foray into the RTD segment via a joint venture in New Zealand in March 2009 for UHT milk under PET Aseptic Bottling, followed by the introduction of Dairy Champ Milk + Juice drink late last year and the recently completed acquisition of a UHT milk manufacturer in Vietnam.

SLAJ and SLAM are manufacturers and distributors of pasteurised milk and other beverages in Malaysia, with brands such as Goodday, Daily Fresh, Mr Farmer and Sky Fresh.

SLAJ has a manufacturing facility in Johor measuring 43,658 sq ft with a factory built-up area of 34,014 sq ft, while SLAM operates in Petaling Jaya on a leasehold land of 22,593 sq ft with a built-up area of 36,705 sq ft.

The acquisition is the group's third since it signed a RM368 million syndicated financing facilities with AmBank Group, EON Bank Group, and Maybank Group in May.

Listed on the Singapore stock exchange Main board, Etika is one of the world's largest manufacturers and distributors of sweetened condensed milk and a leading regional food and beverage group. It is known for its Diary Champ condensed milk brand.

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