Thai Union takes 25 percent stake in Thammachart Seafood Retail
Thai Union has entered into an agreement to acquire a stake in Thammachart Seafood Retail Co., (TSR) which provides professional management services to Thai retailers for their seafood counters.
The deal, announced 25 June, gives Thai Union a 25.1 percent stake in TSR at a cost of THB 37 million (USD 1.1 million, EUR 960,300). It is expected to close by the end of July 2018. In a press release, Thai Union said it expects to increase its shareholding in TSR to 65 percent in 2019 through the exercise of options it acquired as part of the deal.
TSR was founded in 2007 and has grown to handle fresh and frozen seafood products at 158 locations in Thailand. In addition, TSR operates two food and beverage concepts at eight locations, including The Dock Seafood Bar and The Lobster Lab. The company had more than THB 660 million (USD 20 million, EUR 17.1 million) in sales in 2017.
“[Thai Union] will be able to leverage TSR’s creative seafood restaurant concepts such as the Dock and kiosk-style concepts such as the Lobster Lab, as well as potentially supply its products to TSR, including its retail segment,” the company said in a press release.
TSR CEO Julian G. Davies and co-founder Yeeran G. Davies will initially remain majority owners and retain operational control, according to a Thai Union press release.
“Thai Union invested in TSR in order to build on its strong retail platform throughout Thailand, particularly in chilled and smoked seafood products associated with Thammachart,” Thai Union CEO Thiraphong Chansiri said. “This investment marks a strategic step to quickly penetrate the retail segment with Thai Union’s recently-launched frozen products under our Qfresh brand.
Chansiri said the investment in TSR is “in line with Thai Union’s focus in the high-growth market in Asia, including Thailand, where we have seen double-digit growth in our frozen businesses in recent years.”