Charoen Pokphand Foods Plc (CPF), Thailand's largest food producer, has acquired the third largest maker of single-serve frozen entrees in the US for 38.16 billion baht (copy.07 billion).
Bellisio Group, which makes meals under the Michelina's, Boston Market, Chili's, Atkins, EatingWell and EAT! Brands, is also the leader in the same segment in Canada, according to the Thai firm's statement to Stock Exchange of Thailand on Tuesday.
With four facilities in the US, Bellisio has "deep strategic relations" with leading American retailers.
It also distributes its products to more than half of the US within 24 hours and nationwide within 48 hours from its Ohio facility, the statement said.
Bellisio reported a net loss of copy 4 million on revenue of $588 million for 2015, down from $22 million two years ago.
With 100% control of the American company, CPF will use it as platform to enter the world's largest food market and as a gateway to channel its existing products into North America.
The company also has eyes on Bellisio's nationwide distribution network and relationship with key retailers to distribute CPF's products.
Longer-term, CPF expects more synergies including the expansion of retail distribution channels using CPF's relationship with key retailers and the leverage of CPF's expertise and network in Asia and to overseas to penetrate the Asian food segment.
CPF shares fell one baht to 27.75 baht in trade worth 3.2 billion baht on the Stock Exchange of Thailand on Thursday.
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