Food Capitals Plc, the franchise operator of Domino’s Pizza and Kyochon has acquired two companies for 400 million baht (about US$11.6 million) in a bid to expand its businesses in domestic and overseas markets.
From the total investment, it spent 289 million baht (about US$ 8.4 million) to acquire Osha Group’s food business in the United States and the remaining 121 million baht (about US$3.2 million) in taking over Bangkok-based G Enterprise & Co.
Osha is based in California, and currently has five restaurants brands including Lao Table, Osha Thai, Osha Thai 3rd Street, Osha Express, and After Osha. Meanwhile, G Enterprise & Co operates four restaurant brands in Thailand which comprise of Pirate Chambre, Chingcha Challe, Umami Falabella, and Moom Muum Park.
Tanakorn Angpubate, the CEO of Food Capital said that this deal will increase the group’s revenue significantly, putting it at more than 50 percent from 714 million baht last year, which translates to about US$20.7 million.
“Thanks to the acquisitions, we expect to see the profit this year after our operation result had been red for a continuous period of five years,” Tanakorn said.
Besides, the merger between the two food and beverage leaders – G Enterprise and Food Capitals – will surely see a lot of exciting changes to Thailand’s food culture, as G Enterprise is well-known for its food art and creativity.
“We are delighted to work with G Enterprise whose personnel are talented, experienced, and are ready to create positive and wonderful changes to Thai restaurant industry,” Tarakorn said.
“Together with G Enterprise, we have a mission to develop the nation’s food and dining culture where premium-quality, nutritious and delicious food which are beautified just like art pieces delivered to our customers,” he added.
In another development, Food Capitals has also set aside a separate budget of 200 million baht to open new restaurants in Thailand and another two in the United States.
Food Capitals Public Company Limited is listed on the stock exchange of Thailand. It invests in Asia’s growing consumer sectors and is primarily focused on world-renowned franchise restaurants, lifestyle restaurant, and budget hotel businesses.
By Vivian Foo, VCNewsNetwork
This news is published on Reuters.