Duni to acquire assets of disposable packaging manufacturer in Singapore
Swedish firm Duni has inked an agreement to acquire the assets and business of Singapore disposable packaging provider Song Seng for SGD15m ($12m).
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