SATS TAKES CONTROL OF THAI FROZEN MEALS PRODUCER FOOD CITY
SATS, the Singaporean in-flight meals producer and ground-handling services provider, has spent $21 million (€17.3 million) on a majority share of Food City, a Thai frozen-food company.
The deal sees SATS take an 85% stake in Food City, with Food City’s existing owner, the Thai-listed Bangkok Ranch, retaining the remaining 15%.
According to reports, SATS plans for Food City to offer a wider range of products and to reconfigure its production facility in the central province of Pathum Thani so that it can generate 90,000 ready meals per day. Output will go to retail outlets, food service locations and aviation operators.
In a statement, Kerry Mok, CEO of SATS Food Solutions, said SATS would “benefit from Food City’s scale, and location in the Thai food ecosystem” as it supplied its “growing customer base across the region”.
“This acquisition will strengthen our range of food technologies – fresh, cook-chill, ambient and frozen – to serve different customers’ needs,” he said.
According to reports, the deal means that SATS now owns a total of 32 meal production facilities in multiple Asian countries and territories, including mainland China, India, Japan, Macau, Malaysia and the Philippines.
SATS was founded in 1972 and was part of Singapore Airlines Group until 2009, when it was divested from the group.