Swedish firm Duni has signed an agreement to acquire the assets and business of Singapore disposable packaging provider Song Seng for S$15m ($12m).
The assets will be acquired by Duni on 1 July.
According to Duni, 75% of the purchase price will be paid at the time of the acquisition and the remaining 25% will be paid after a period of three years.
The additional value is conditional on the profit performance of the company.
The annual sales of Song Seng are currently estimated to be around S$16m ($13m). Its profitability is easily in accordance with Duni’s financial goal of exceeding a 10% earnings before interest and taxes (EBIT) margin.
Duni president and CEO Thomas Gustafsson said: "This acquisition is a key step in our growth strategy of expanding on emerging markets and increasing our level of service in the growing take-away and fast food chain segment."
The product portfolio and market knowledge of Song Seng in South East Asia is expected to make a positive impact on the continuing growth strategy of Duni, both in the region and in Europe.
Song Seng provides packaging for food and beverages in Singapore, and has a growing export business in Asia and Oceania. Its customers include hotels, restaurants, restaurant chains and hospitals and other healthcare institutions.
Duni supplies products for table setting and takeaway food.
Image: Duni president and CEO Thomas Gustafsson. Photo: copyright Duni AB