Catalist-listed coffeeshop operator Kimly said in a filing on the Singapore Stock Exchange today (May 11) that it has entered into an acquisition agreement with the founders of Tenderfresh, Soh Chun King, Koh Siew Tin and Chew Kian Ho.
It is acquiring a 75% stake in local food company Tenderfresh for S $ 54 million as part of its efforts to expand its presence in the local and regional halal food industry.
Of this figure, S $ 38 million will be paid in cash, while the remaining S $ 16 million will be satisfied by issuing 51.2 million Kimly shares at an issue price of 31.24 cents.
The proposed acquisition includes central kitchens, restaurants, kiosks, food stalls, factories and equipment, brands and customer relationship, which operate through various entities.
Kimly also granted a put option to the sellers of Tenderfresh, who in turn granted Kimly a call option. Both the put and call options are “persistent” and will allow Kimly to acquire the remaining 25 percent of Tenderfresh five years after the completion date.
Kimly expects the proposed acquisition to be completed within the next five months.
Before the transaction is concluded, Tenderfresh’s business will be restructured and consolidated. A new entity will be formed to own the company, of which Kimly will own 75%.
Making progress in the halal industry
Founded in 1979, Tenderfresh specializes in fried or roasted spring chickens and chicken wings.
It started as a hawker stand at the Whitley Road Hawker Center in the 1970s, but quickly grew to 2020, it has 18 F&B brands and 64 outlets including food kiosks, catering services, retail outlets and original equipment manufacturing (OEM).
Some of its brands include Amigo’s, ToriGo !, Tenderbest, Golden Rooster, and i chicks.
It also operates a 25,000 square foot central kitchen that serves approximately 140 brands and outlets. The kitchen also supplies semi-finished products to its own outlets.
“As more and more food and beverage operators seek to outsource their food production to reliable OEM partners to reduce labor requirements, the group believes this will generate new sources of revenue. income, ”Kimly said.
Additionally, given that Tenderfresh’s central kitchen is halal certified, Kimly believes she can leverage that and her vast network in the halal food market to make further strides in the industry.
Singapore’s Halal brand and standard are also recognized by Brunei, Indonesia and Malaysia, Kimly noted.
This new acquisition is not their first meeting together. In November last year, Tenderfresh teamed up with Kimly to develop Kedai Kopi, a new halal coffeeshop concept at Clementi.
This is also not Kimly’s first acquisition. In June 2020, he finalized the acquisition of six food outlets for S $ 35.5 million, including two coffeeshops, three industrial canteens and a catering unit.
Over the years, many other large restaurant players also buy from smaller operators.
Other notable acquisitions in the local F&B industry include Jumbo Group and Kok Kee Wanton Noodle for S $ 2.1 million in cash and stock; as well as the acquisition of Kay Lee Roast Meat by electronics firm Aztech Group for S $ 4 million, which took just 10 minutes to seal the deal.
Featured Image Credit: Kimly Coffeeshop / Daniel Food Diary
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