DKSH HOLDING AG Media release
DKSH becomes largest field marketing provider in Australia and New Zealand
DKSH has signed an agreement to acquire the field marketing provider Crossmark. With this transaction, DKSH pursues its acquisition strategy - which has been accelerated since 2017 - and strengthens the service portfolio of the Business Unit Consumer Goods in Asia Pacific.
Zurich, Switzerland, December 18, 2019 - DKSH has signed an agreement to acquire the field marketing provider Crossmark in Australia and New Zealand. In line with its intensified acquisition strategy, DKSH expands in complementary and high-margin businesses in Asia Pacific. In 2018, DKSH acquired the beverage business of Davies Food in New Zealand and in 2019, the consumer goods distributor CTD in Australia. DKSH now strengthens its field marketing services in Australia and New Zealand.
In Asia, DKSH has been active in field marketing through its joint venture DKSH Smollan since 2009. Services offered include advisory, sales and retail execution, marketing solutions, technology and e-commerce. These value-adding services increase the demand for products directly at the point of sale and offer attractive growth opportunities for manufacturers. In only ten years, the joint venture has become the leading field marketing provider with a regional coverage in now eleven markets in Asia Pacific.
Crossmark operates in various sectors, such as grocery, specialty retail, hardware, pharmacy as well as telecommunications, and generates annual sales of CHF 50 million1 at sound profitability and return on capital. The acquisition of the largest field marketing provider in Australia and New Zealand, with around 250 employees, is immediately earnings accretive for DKSH.
Terry Seremetis, Head Business Unit Consumer Goods, DKSH, commented: "With the acquisition of Crossmark we strengthen our field marketing activities in Australia and New Zealand and expand our leading market position. We are proud to now offer clients an even broader service portfolio."
Andy Kirk, CEO of Crossmark Australia and New Zealand, added: "We are pleased to join DKSH Smollan and to become part of the largest field marketing provider in Asia Pacific. With the combined expertise of Crossmark and DKSH Smollan, we will offer clients even better services to increase the demand for their products at the point of sale."
Subject to completion of certain conditions precedent, closing of the transaction is expected in the first quarter 2020. DKSH will acquire Crossmark New Zealand, and DKSH Smollan will acquire the Australian entity. DKSH owns 51 percent of the joint venture with Smollan and will fully consolidate both entities.
¹ Exchange rate Australian dollar / Swiss franc: 0.7
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