BreadTalk plans to acquire Singapore’s Food Junction for $80 million
Category: #business  By Saipriya Iyer  Date: 2019-09-03
  • share
  • Twitter
  • Facebook
  • LinkedIn
BreadTalk plans to acquire Singapore’s Food Junction for $80 million

The take-over would be paid in cash, which would position BreadTalk as the third largest food court operator in Singapore.

BreadTalk Group, a food and beverage company based in Singapore, plans to acquire Food Junction Management Pte Ltd., a chain of food court that offers local and international cuisine, for $80 million. The acquisition brings BreadTalk’s founder George Quek to a full circle as he was the person who had helped Food Junction start in 1993.

According to credible reports, the transaction will be remunerated in cash funded through BreadTalk's internal resources, such as available debt facilities and cash in hand.  Moreover, the purchase would make BreadTalk one of the largest food court operator in Singapore, following NTUC Enterprise, which recently announced plans to acquire Kopitiam and Koufu.

Reportedly, as of June 30, BreadTalk Group would operate two food courts in Malaysia under brands like Food Opera and the Food Republic, and 14 food courts in Singapore.

Speaking on the move, Alfie Yeo, Analyst, DBS, said that with Broadway buying S-11 in 2018, NTUC Enterprise acquiring Kopitiam in 2018 and now BreadTalk purchasing Food Junction, the market for coffee shops and food courts is certainly consolidating.

He claims that while the acquisition is valued at $80 million, it is for a business that has managed to secure a net profit of just $3,183 in the Q1 of 2019 and recorded a net loss of $1.7 million in FY 2018. Additionally, Food Junction's net tangible assets were valued at $12.3 million, which indicates that the company was accounted at over six times than the price-to-book ratio.

Reportedly, in addition to acquiring Food Junction, BreadTalk also claims that the planned acquisition will enable it to obtain benefit from the synergies as well as added revenue streams from its existing businesses which can be obtained through sharing of resources and streamlining of costs.

Source Credit: https://www.straitstimes.com/business/companies-markets/breadtalk-plans-80m-acquisition-of-food-junction

  • share
  • Twitter
  • Facebook
  • LinkedIn

About Author

Saipriya Iyer

Saipriya Iyer    

Saipriya Iyer currently works as a content developer for GroundAlerts. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had previous experience of 3 years under her belt, she has dabbled with website ...

Read More >>

More News By Saipriya Iyer

Atipa Technologies introduces Procyon G-Series for enhanced research
Atipa Technologies introduces Procyon G-Series for enhanced research
By Saipriya Iyer

Atipa Technologies, a prominent provider of storage and computing solutions, has reportedly introduced a deep learning and high-performance platform named Atipa Procyon G-Series. The platform is powered by latest NVIDIA A100 Tensor Core GP...

Congenica Ltd. secures USD 50 million in a Series C funding round
Congenica Ltd. secures USD 50 million in a Series C funding round
By Saipriya Iyer

U.K.-based digital health company Congenica Ltd. has reportedly announced that it has secured USD 50 million (£39 million) in a series C funding round. The new funds will provide strategic as well as geographic opportunities which will help the...

Vestas secures another 50 MW wind farm order from Vietnam-based GEC
Vestas secures another 50 MW wind farm order from Vietnam-based GEC
By Saipriya Iyer

Vestas, a leading Danish wind turbine manufacturer, has reportedly secured another 50 MW wind energy farm contract in Vietnam with la Bang Wind Power Joint Stock Company, a local energy firm and a subsidiary of GEC (Gia Lai Electricity Joint Stock Co...