Swedish convenient products supplier Duni has signed a deal to acquire the assets and business of Singapore-based disposable packaging provider Song Seng for SGD15m ($12m).
Duni will acquire the assets on 1 July 2013.
The acquisition is said to be a key step in Duni’s growth strategy of expanding on emerging markets and increasing its level of service in the take-away and fast food chain segment.
Song Seng CEO Willie Soh said, "Song Seng’s product portfolio and market knowledge in Southeast Asia will make a very positive contribution to Duni’s continuing growth strategy, both on our existing market and inEurope."
According to Duni, 75% of the purchase price will be paid at the time of acquisition and 25% after three years.
The profitability of Song Seng is in line with Duni’s financial goal of a >10% EBIT margin.