Swiss company, DKSH signed an agreement in December 2018 to acquire the consumer goods distribution business of Auric Pacific in Singapore and Malaysia for an initial price of USD 160 million, to complement its existing fast-moving consumer goods (FMCG) market expansion services.
DKSH helps business partners grow by providing a complete range of specialized services along the value chain: from sourcing, market analysis and research, marketing and sales to distribution and logistics and after-sales services. Auric Pacific also operates as Market Expansion Services provider of fast moving consumer goods in Singapore and Malaysia. Auric’s 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 USD 185 million with an operating profit (EBIT) of approximately USD 14 million. The acquisition is supposed to create enhanced scale and synergies and 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.
(Source: The Edge; News Beezer)