Dusit Foods has acquired a 55% stake in Port Royal and Bonjour Bakery Asia, with more than 50 branches across Thailand and one in China.
The move aims to develop new streams of recurring revenue in the food business for Dusit Foods, a subsidiary of Dusit.
It will also serve as a springboard to developing baking factories producing French-style Port Royal's OEM model to provide new business-to-business services and expand Bonjour Bakery's franchise domestically and internationally.
As part of the acquisition, Dusit Foods, Port Royal and Bonjour Bakery Asia will establish a new joint venture named Bonjour Bakery Asia Co.
Suphajee Suthumpun, group chief executive of Dusit, said the strategic acquisition is the latest significant development in the evolution of the firm's food business.
"Following our previous investment in NR Instant Produce Co [NRF], which we sold to excellent returns as part of a strategic divestment when NRF was listed on the Stock Exchange, we knew we would need to reinvest in the manufacturing side of food business to achieve our vision of standardising our products and optimising production costs for our food business overall," she said.
"So, when the opportunity to invest in Port Royal and Bonjour Bakery arose, we did not hesitate. Not only will this investment help us to meet the aforementioned goals, but it will also open many doors for potential growth -- internally, externally, domestically and internationally."
Mrs Suphajee said Port Royal's facility in the eastern seaboard industrial estate is equipped with the latest baking technology, plus its team of seasoned professionals and established logistics and distribution network were key elements behind Dusit's decision to invest.
To develop the investment and leverage the capabilities of Port Royal and Bonjour Bakery, Mrs Suphajee said Dusit will focus on three key areas -- product standardisation and cost optimisation, opportunities to grow and capitalision of Port Royal's expertise, and recurring revenue through the new expansion of the Bonjour Bakery franchise model in Thailand and abroad.
"In line with our group-wide strategy for balance, expansion and diversification, we will also continue to seek opportunities to grow, complement and leverage our existing operations to drive increasing returns across all our lines of business," she said.
Dusit's past investments in the food business include Epicure Catering Co, a leading provider of quality food services to international schools in Southeast Asia; The Caterers Joint Stock Co (The Caterers), a leading catering company for schools and events in Vietnam; and KAUAI, a global healthy restaurant chain from South Africa that has penetrated the Thai market as part of a joint venture with Dusit Foods.
