SET-listed Betagro Plc has acquired Eggriculture, a leading integrated egg producer in Singapore, in a deal valued at 1.9 billion baht.
This strategic move is set to amplify Betagro's presence in the Singaporean market, leveraging its expertise to enhance operations and strengthen its brand across retail and the hotel, restaurant and catering (HoReCa) channels, said Vasit Taepaisitphongse, chief executive and president of Betagro.
"The acquisition will not only boost efficiency and productivity throughout the value chain but also position Betagro for long-term sustainable growth, with a target to increase our revenue in Singapore by 400% by 2025, compared to last year," he said.
He added that Betagro is focusing on long-term growth by becoming a food industry leader in Asean.
Singapore is a strategic and high-potential market for the company due to consumer preference for high quality, food safety, and sustainability.
Additionally, the Singaporean government's food resilience "30 by 30" goal, which aims to produce 30% of their food locally by 2030, supports the growth of Singapore-based food producers.
Following this deal, Betagro will hold 75% ownership, while Radiant Grand International Limited (RGI) will hold 25%.
Eggriculture held a 20% market share at the end of the 2024 fiscal year and demonstrated strong performance over the past three years (2021-2023), with a revenue compound annual growth rate of 27.1%, according to a Betagro press release.
Eggriculture has about 500,000 layers, producing an average of 350,000 fresh eggs daily, according to the company's website.
The acquisition is expected to have an immediate positive impact on Betagro's overall financial performance and enhance the group's profitability, said Mr Vasit.
Chayadhorn Taepaisitphongse, chief strategy and innovation officer at Betagro, said Betagro will leverage the strengths of both companies to capture synergies in multiple dimensions.
"We will enhance Eggriculture's operations in farm management, animal breeding, feed formulation, and the use of advanced technology to boost productivity. The focus will also be on new product innovation and expansion to meet changing consumer preferences, ensuring high-quality and safe food for all," he said.
Meanwhile Eggriculture, with its strong distribution network across modern trade and HoReCa channels, will strengthen Betagro's brand recognition and broaden its customer base.
Mr Chayadhorn said Betagro believes this synergy will enhance food security within the Asean region and meaningfully grow Betagro's footprint in Singapore.
Ma Chin Chew, chief executive of Eggriculture, said the deal would enable Eggriculture to enhance its egg production capability, gaining a competitive edge to meet the demands of Singaporean consumers who seek high-quality, safe and sustainable food options.
"With Betagro's in-depth knowledge and extensive experience in the food industry, we can strengthen our supply chain efficiency and further support Singapore's food security goal," he said.