AQUA dives into food industry with major restaurant acquisitions
The company acquires 204 restaurants across popular brands like Santa Fe and Ramen Desu in partnership with established players
Aqua Corporation Public Company Limited (AQUA) on Friday announced its foray into the restaurant industry through a partnership with Singha Corporation subsidiary, Food Factors Co Ltd, and CEO of PDS Holding, Piyalert “Beer” Baiyoke.
The collaboration involves the acquisition of a vast restaurant network, encompassing 204 outlets across several established brands, including 142 branches of Santa Fe, Santa Fe Easy and Meng Zap Nua, 10 branches of Sekai No Yamachan, 42 branches of Somtum Je Daeng Sam Yan and 10 branches of Ramen Desu, Ikkousha Ramen and Uchidaya Ramen.
This acquisition is expected to generate a combined revenue exceeding 1.7 billion baht annually.
AQUA will hold a controlling stake of 51%, with Food Factors contributing 40% and Piyalert holding the remaining 9%. The restructuring process is underway and should be finalised by October with a registered capital of 2.5 billion baht.
Shine Bunnag, acting chairman of AQUA’s board of directors, reported the acquisition to the Stock Exchange of Thailand after it was finalised in the company’s board meeting on Thursday.
“This strategic investment in the food sector presents a significant opportunity for AQUA to diversify its revenue streams,” Shine said. “The food industry demonstrates consistent growth potential, and we firmly believe this move will enhance the company’s long-term EBITDA, fostering stability and growth in line with rising consumer demands.”
Shine underlined the strategic value of the chosen brands, saying they are well-established and have a strong customer base. “Plus, the food business is resilient and less susceptible to economic fluctuations,” he said.
“Our decision to partner with Food Factors and Piyalert is the result of a meticulous selection process. These partnerships offer clear synergies in marketing and efficient management networks ensuring optimal success.”
Concluding the announcement, Shine said he was confident in this business plan’s long-term benefits for AQUA shareholders. “This investment is projected to generate significant value through operational growth. Furthermore, this venture represents a pivotal step towards solidifying AQUA’s stability and future prosperity,” he concluded.
FAB Food Holding Co Ltd, a subsidiary of AQUA, and the two partners are scheduled to formally unveil the venture at a press conference next week.
