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SATS acquires UK aviation food company for £26.7m
MAINBOARD-LISTED SATS said on Monday it has acquired UK-based aviation food solutions company Monty's Bakehouse UK for £26.7 million (S$48.4 million).
Monty's Bakehouse UK has become a wholly-owned subsidiary of SATS Investments, which is in turn wholly owned by SATS.
The purchase will be funded through internal resources and paid in cash. It also includes a deferred earn-out consideration of up to £10.1 million, which is payable over three years, the aviation services provider said in a regulatory filing.
The acquisition was completed concurrently with the signing of the sales-and-purchase agreement on Feb 29.
Through the buyout, SATS plans to bring Monty's Bakehouse products and capabilities to its Asia customers to meet the growing demand for buy-on-board meals and snacks. SATS also intends to enhance its food solutions for customers and support growth into new customer segments.
SATS and Monty's Bakehouse will set up an innovation centre in Singapore to test-bed innovative food products for aviation catering, buy-on-board retail and adjacent markets.
To fulfil its 2030 goal to adopt sustainable food packaging, SATS will also work with Monty's Bakehouse to develop sustainable food packaging solutions that reduce cost, waste and logistical complexities using minimal plastics, it said.
Monty's Bakehouse produces sustainably packaged, hand-held snacks for premium airlines and other customer segments across the world.
SATS said the acquisition is not expected to have any material impact on the group's net tangible assets per share and consolidated earnings per share for the current financial year.
SATS shares were trading at S$4.03 as at 9.29am on Monday, up five cents or 1.2 per cent.