Its UK subsidiary, Daniels Group, was sold to packaged food brand Hain Frozen Foods.
SATS announced that its wholly-owned subsidiaries, Singapore Food Industries Pte. Ltd. and Singapore Food Development Pte Ltd, have entered into a share sale and purchase agreement on 25 October 2011, with Hain Frozen Foods UK Limited, a wholly-owned subsidiary of The Hain Celestial Group, Inc., for the sale of all the issued shares of S Daniels plc and International Cuisine Limited held by the Sellers.
Under this Transaction, the Sellers will be paid £151 million (S$306m), plus potential additional deferred consideration of up to £13 million over the next two years. The sale was completed on 25 October 2011.
On the rationale for the sale, Mr Tan Chuan Lye, Acting Chief Executive Officer of SATS explained, “The Board and Management carry out periodic reviews of the Group’s strategy and business options, taking into consideration the growth opportunities and the prevailing economic environment and outlook. While SATS has supported the Daniels Group’s growth since 2009 by investing in new production facilities and helping them build trading volumes with new customers, we believe that it made more sense if they were part of another company in the branded products market, who could help them achieve their full potential and growth in this space. With the Hain Celestial Group being a leading player in the branded packaged food space in the US, UK and Europe, this is a much better fit for the Daniels Group.”
Do you know more about this story? Contact us anonymously through this link.