Fraser and Neave ties up with Maxim’s to acquire Starbucks Thailand

Thai baht notesThai baht notes

Fraser and Neave has tied up with Maxim’s Caterers to acquire all of Starbucks Coffee (Thailand) in a move to enter the retail coffee market in Thailand, F&N said Thursday.

“The investment will add an iconic coffee brand to F&N’s portfolio of renowned brands which includes its proprietary 100PLUS isotonic beverage, strengthen F&N’s regional footprint and extend its presence into the retail coffee segment of the total beverage market,” F&N said in a filing to SGX.

“The acquisition allows F&N to leverage Maxim’s long-standing partnership with Starbucks and its extensive experience in running Starbucks stores in multiple markets as well as other food and beverage retail outlets, to grow Starbucks Thailand’s fast-expanding footprint of 372
Starbucks stores,” it added.

F&N said the deal, which is expected to close by end-May, is earnings accretive and will be funded via a mix of debt and equity financing.

The acquisition will be made via Coffee Concepts (Thailand), or CCT, which is a partnership between F&N Retail Connection (FNRC) and Maxim’s, the filing said.

Maxim’s is a partner of U.S.-based Starbucks Coffee, and has been operating Starbucks outlets as a licensee since 2000, with stores located in Hong Kong, Macau, Singapore, Vietnam and Cambodia, the filing said. Maxim’s also licenses other brands, including Genki Sushi, The Cheesecake Factory and Shake Shack.

Under the deal, FNRC, which is a joint venture including F&N and Thai Beverage, formed two new joint venture companies with MX Caterers (Asia), or MXCA, a separate filing from Thai Beverage said.

The first joint venture, Max Asia Food & Beverage (Thailand), or MAFB, will be 70 percent held by FNRC, while MXCA and Coffee Concepts (Hong Kong), or CCHK, will respectively hold around 29.99 percent and 0.0005 percent, Thai Beverage said.

The second joint venture is Coffee Concepts (Thailand), or CCT, in which MAFB will hold 51 percent and MXCA and CCHK will hold 48.999 percent and 0.001 percent respectively, Thai Beverage said.

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