FOOD and beverage firm Fraser and Neave (F&N) has acquired the Starbucks Thailand coffee chain.
The company on Thursday said it has entered into an agreement to buy Starbucks Coffee (Thailand).
The deal was done through Coffee Concepts (Thailand), a partnership between F&N Retail Connection and Maxim’s Caterers.
Maxim’s Caterers is a long-time partner of Starbucks, which is based in the US. It operates Starbucks outlets in Cambodia, Hong Kong, Macau, Singapore and Vietnam.
The acquisition will be funded from a mix of debt and equity financing and should be closed by the end of this month.
It is expected to contribute to F&N’s earnings in the financial year ending on September 30.
F&N said in a statement that the investment is aimed at strengthening its regional footprint and extending its presence into the retail coffee segment of the beverage market.
The company added that the acquisition will allow it to leverage Maxim’s Caterers’ longstanding partnership with Starbucks, as well as its extensive experience in running outlets in multiple markets and other food and beverage operations, to increase the number of Starbucks Thailand outlets from the current 372.
Maxim’s Caterers operates Chinese, Asian and European restaurants, quick-service eateries, bakery shops, Japanese chain restaurants and institutional catering. It is also the licensee of other brands, including Genki Sushi, Ippudo, The Cheesecake Factory and Shake Shack.
It operates around 1,300 outlets in Cambodia, Hong Kong, Macau, China, Vietnam, Thailand, Singapore and Malaysia.
Koh Poh Tiong, an F&N director and chairman of its board executive committee, said: “We are delighted by the opportunity to partner Maxim’s Caterers to invest in Starbucks Thailand. This acquisition provides an interesting strategic opportunity for F&N to enter and participate in the fast-growing premium retail coffee market in Thailand, one of F&N’s three significant core markets.
“We believe that the addition of Starbucks Thailand, with its store footprint and its position as a well-recognised coffee retailer in Thailand, will strengthen our competencies in the on-premise sector and elevate our capabilities in directly engaging consumers in the long term.” THE STRAITS TIMES/ASIA NEWS NETWORK