Zurich, Switzerland, March 29, 2019 - DKSH has successfully completed the acquisition of the consumer goods distribution business of Auric Pacific in Singapore and Malaysia. With this move, DKSH increases its exposure to the high-margin food service business and expands its presence in the consumer goods industry in Asia.
DKSH announced the acquisition in December 2018 and has now closed it according to plan. Shareholders in Malaysia voted with a clear majority in favor of the transaction at the Extraordinary General Meeting late February this year. Also, all other conditions were fulfilled, and regulatory approvals obtained. The consumer goods distribution business of Auric Pacific generates net sales of around CHF 185 million with an operating profit (EBIT) of approximately CHF 14 million. DKSH is acquiring 100% of this business in Singapore and Malaysia for a consideration of around CHF 160 million.¹ The business will be fully consolidated as per April 1, 2019. By bringing together two highly successful and complementary companies, clients of DKSH and Auric Pacific can benefit from broader market coverage and regional exposure as well as gain access to a wider range of customers.
Stefan P. Butz, CEO of DKSH, said: "We are proud to close the largest acquisition since the merger of DKSH in 2002. It ideally complements our existing Consumer Goods business in Singapore and Malaysia, as it increases our exposure to the high-margin food service channels. This further strengthens the market position of DKSH and underlines our confidence for the long-term development of our Consumer Goods business. We look forward to welcoming the new employees to the DKSH family."
¹ Exchange rate Singapore dollar / Swiss franc: 1.38