Etika acquires Malaysia's Family Bakery for S$8mln

Bakery business poised to drive growth by becoming leader in regional F&B group.

Further to the announcement dated June 4, 2010, Etika International Holdings Limited (“Etika” or the “Group”), one of the world’s largest manufacturers and distributors of sweetened condensed milk and a leading regional Food and Beverage (“F&B”) Group, announced today the completion of the acquisition of Family Bakery Sdn Bhd, Daily Fresh Bakery Sdn Bhd and Hot Bun Food Industries Sdn Bhd (jointly referred to as “Family Bakery”) for a cash consideration of approximately RM 18.7 million (approximately S$8.0 million), according to an Etika report.

Etika’s Chairman, Dato’ Jaya Tan, said, “We are delighted to welcome Family Bakery into the Etika Group. As part of our strategy to further strengthen our position as a leading regional F & B Group, the bakery business has been identified as one of the Group’s potential growth drivers going forward.”

Etika Group Chief Executive Officer, Dato’ Kamal Tan added, “As mentioned in our earlier announcement, we expect to reap synergistic benefits from this acquisition in view of its fundamental similarity with the Group’s existing bakery business. As Family Bakery is already a profitable business, we expect the Group’s earnings to be enhanced with immediate effect. We will further explore ways to synergize both operations. As part of the integration process, we will be looking at areas that will contribute towards improving operational efficiencies that will further enhance profitability.”

Family Bakery’s manufacturing facility is located in Meru, Klang and produces fresh baked buns and breads which are then distributed nationwide to hypermarkets, supermarkets, factory canteens, petrol stations, grocery stores and convenience shops.

Etika further added that Family Bakery will continue to operate at its existing facility in the next two years before the Group considers relocation of its operation as it is still able to accommodate additional expansion required in the near term.