Singha Corporation has confirmed it acquired a majority stake of up to 90% of local steakhouse chain Santa Fe.
The deal will be made through new food subsidiary Food Factors Co, which is tasked with expansion of the group’s food business for both domestic and international markets.
Details of the deal are scheduled to be announced on Oct 28, according to a source who requested anonymity from Singha Corporation, an investment arm of Boon Rawd Brewery Co, the maker of Singha beer.
AVCJ, a leading provider of private equity and venture capital intelligence in Asia, first reported Thailand-based private equity firm Lakeshore Capital offloaded its entire stake in local steakhouse chain Santa Fe to Singha Corporation for US$50 million (1.52 billion baht).
The private equity firm first invested in KT Restaurant, the operator of the steakhouse chain, in early 2015, according to International Legal Counsellors Thailand, which advised on the deal.
The report said the initial funding was $4.5 million for an undisclosed stake. Based in Bangkok, Santa Fe’s restaurants are mostly located in the capital.
The company also has one restaurant in Phnom Penh, Cambodia.
Lakeshore Capital was founded in 2009. It launched the $60-million Lakeshore Capital Fund I in 2015. Santa Fe is understood to have been the fund’s second investment.
Last year, the firm announced it acquired a controlling stake in analgesic product maker Devakam Apothecary Hall, its sixth investment.
Piti Bhirombhakdi, the strategic supply chain officer and director of Boon Rawd Brewery Co, said in March 2018 the group plans to splurge 5 billion baht to expand its food business globally between 2018 and 2020, aiming to raise food sales to 15 billion by 2020.
Of the total investment, 2.5 billion baht will be allocated to Food Factors Co, with the balance going to finance the brewery’s supply chain development.
Mr Piti said the expansion of the food business stems from the company’s belief that food is one of the four necessities of life and will not be affected by any digital disruption.
Food Factors aims to develop a strategic network for its food business by co-investing with each country’s local manufacturers.
Boon Rawd Brewery has expanded its food business mainly via beer distributing companies over the past nine years. About 80% of food sales are from the domestic market and the export market accounts for the rest.
Mr Piti predicts sales of the group’s food business will reach 15 billion baht by 2020, up from 2.5 billion in 2017.