CPF Investment Ltd, a wholly owned subsidiary of Charoen Pokphand Foods Plc (CPF), has inked a share purchase agreement with Westbridge Food Group Ltd (WFGL) at a combined value of £60 million (2.6 billion baht) to expand CPF's market in Europe.
CPF chairman and chief executive Adirek Sripratak said the investment in WFGL will allow CPF to expand its distribution network for retail, food service and food production in Britain and the EU.
"Most of WFGL's markets are new customer groups for CPF," he said. "WFGL's products mainly involve chicken, shrimp, fish and processed foods, which fall in line with CPF's products."
CPF will have an import quota licence to the EU for chicken products since WFGL has more than 100 subsidiaries that have import quotas. WFGL's management team is also highly experienced in food business management.
"This investment will encourage CPF's export opportunities to Britain and European countries," Mr Adirek said.
WFGL is a British company with expertise in meat and ready-made products. The company also engages in the development, sourcing and supply of products across many food groups worldwide.
WFGL is invested in 117 companies in Britain and 16 companies in the Netherlands.
WFGL also has a repacking factory in Britain for product packaging.
In 2015, WFGL recorded a total revenue of 14.7 billion baht, with 173 million baht net profit.
CPF, the SET-listed flagship of agribusiness giant Charoen Pokphand Group, expects revenue growth of 10% this year, boosted largely by overseas operations.
The company reported revenue growth of 10% to 464 billion baht in 2016. While sales revenues from CPF's overseas operations and export business accounted for 68% of total revenue, the remaining 32% came from CPF operations in Thailand.
CPF posted a 33% surge in profit to 14.7 billion baht in 2016.
CPF shares closed yesterday on the Stock Exchange of Thailand at 28.25 baht, up 50 satang, in trade worth 549 million baht.