Seafood retailer Thai Union Group has entered into a deal to acquire a 25.1% stake in retail management service provider Thammachart Seafood Retail Company Ltd. (TSR), the company has announced.
The approximately THB 37 million deal (roughly €960,000) with the Thai company, which helps retailers manage their seafood counters, is expected to be completed by the end of July.
Thammachart Seafood Retail, incorporated in 2007, currently has sales of more than THB 660 million (€17.1 million). It handles fresh and frozen products at 158 locations throughout the country. Its portfolio includes food and beverage concepts The Dock Seafood Bar and The Lobster Lab at eight locations, as well as the management of the Ocean Bar.
Creative Restaurant Concepts
Thammachart Seafood Retail CEO and co-founder Julian G. Davies and co-founder Yeeran G. Davies will remain majority owners at the outset and keep operational control. Thai Union Group said it expects to increase its share to 65% in 2019, through options.
'Thai Union, owner of Thai-leading brands such as SEALECT, Fisho and Qfresh, will be able to leverage TSR’s creative seafood restaurant concepts such as the Dock and kiosk-style concepts such as the Lobster Lab, as well as potentially supply its products to TSR, including its retail segment,' the company commented in a release.
Thiraphong Chansiri, CEO of Thai Union Group, added, "Thai Union invested in TSR in order to build on its strong retail platform throughout Thailand, particularly in chilled and smoked seafood products associated with Thammachart."
He said the investment is in line with the group's focus on the high-growth market of Asia, including Thailand, where the group has posted double-digit growth in its frozen business during recent years.
Thai Union Group has annual sales exceeding THB 135 billion (€3.5 billion) and a workforce of 49,000 employees. Its brands include John West, Mareblue, and King Oscar.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: European Supermarket Magazine.