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DKSH signs agreement to acquire Auric Pacific (M) Sdn. Bhd. December 21, 2018


			
				DKSH signs agreement to acquire Auric Pacific (M) Sdn. Bhd.

DKSH today announces that it has signed an agreement to acquire Auric Pacific (M) Sdn. Bhd., a leading distributor of fast-moving consumer goods in Malaysia. With this move, DKSH increases its exposure to the high-margin food service business and expands its leading market position in the fast-moving consumer goods industry in the country.

Media release 

DKSH signs agreement to acquire Auric Pacific (M) Sdn. Bhd.

DKSH today announces that it has signed an agreement to acquire Auric Pacific (M) Sdn. Bhd., a leading distributor of fast-moving consumer goods in Malaysia. With this move, DKSH increases its exposure to the high-margin food service business and expands its leading market position in the fast-moving consumer goods industry in the country.

Petaling Jaya, Malaysia, December 21, 2018 – DKSH, the leading Market Expansion Services provider with a focus on Asia, today announces that it has signed an agreement to acquire Auric Pacific (M) Sdn. Bhd. With the move, DKSH will expand its higher margin food service business and strengthens its leading position in the fast-moving consumer goods industry in Malaysia.

 

Auric Pacific (M) Sdn. Bhd. is one of the established players in the distribution of chilled and frozen products and in the food services channel in Malaysia. It is principally involved in the supply and manufacture of bakery and confectionary products.

 

Auric Pacific (M) Sdn. Bhd. generates net sales of approximately MYR 253.1 million with an operating profit (earnings before interest and tax) of approximately MYR 27.1 million for the nine months financial period ended September 30, 2018. DKSH will acquire 100% of Auric Pacific (M) Sdn. Bhd. for a consideration of SGD 157,674,000 (equivalent to MYR 480,905,700). DKSH expects the acquisition to be earnings accretive due to the synergy effect as a result of the increase in its product portfolio. The existing management team of Auric Pacific (M) Sdn. Bhd. and employees will join DKSH which will in turn help to ensure continuity and competency of the management team.

 

Nicholas McLaren, Head, Country Management and Vice President, Country Finance, commented: “This value-accretive acquisition of Auric Pacific (M) Sdn. Bhd. is a strategic growth initiative to expand DKSH’s high-margin food services business in Malaysia. At the same time, we are strengthening our leading position in the fast-moving consumer goods industry here.”

 

Closing of the transaction is expected by the end of the first quarter of 2019 and is subject to certain conditions and regulatory approvals. DKSH will be holding an Extraordinary General Meeting (EGM) to seek its shareholders’ approval on this acquisition. Further announcement will be made in due course in relation to the date and time of the EGM.