BreadTalk Acquires Food Junction Management
Singaporean BreadTalk Group announced its intention to acquire food court operator Food Junction Management (FJM) for SGD80m (approx. USD57m) through subsidiary Topwin Investment Holding.
The total consideration of SGD80m will be paid in cash and will be funded through BreadTalk Group’s internal resources – including available cash on hand – and debt facilities, according to channelnewsasia.com.
The amount could be subject to further adjustments to take into account actual cash, debt and working capital of FJM at the completion of the acquisition.
The figure was arrived at after “arms’ length negotiations”, said BreadTalk Group in its filing.
It took into consideration factors such as the quality of the assets being acquired and the strategic value of FJM’s existing network of food courts and outlets to BreadTalk Group, as well as its financials, earnings quality and future potential.
FJM and its wholly owned subsidiaries Food Junction Singapore and T&W Food Junction operate food courts and food and beverage outlets in Singapore and Malaysia.
They collectively operate a network of 12 food courts in Singapore and three in Malaysia, with another one scheduled to open in Johor Bahru next year.
BreadTalk Group operates food courts under the Food Republic and Food Opera brands across Singapore, Malaysia, China, Taiwan, Cambodia and Thailand.
As of Jun 30th this year, BreadTalk Group operates 14 food courts in Singapore and two in Malaysia.
Photo source: www.fool.sg