ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Business

Thai Union shoots for $1.4bn sales boost via acquisitions

Thai Union CFO Joerg Ayrle explains the company's acquisition strategy in Bangkok on May 16.

BANGKOK -- Thai Union Group, the world's largest processor of canned tuna, aims to add $1.4 billion in sales by means of mergers and acquisitions in the five years through 2020. The company tallied $3.7 billion in 2015.

 "We are in the process of identifying some pet care-related M&A activities," Chief Financial Officer Joerg Ayrle told an investors conference in Bangkok on Monday. He added that the company should be careful not to overpay for such deals, since the "market valuation [for pet care companies] is extremely high."

Thai Union's pet care segment in the January-March quarter logged a gross profit margin of 22.8%, higher than the 18.5% for seafood kept at ambient temperature and 9.5% for chilled seafood. This explains the company's interest in expanding the pet business. 

When it comes to seafood, Thai Union is looking at acquisitions in markets where it has a relatively weak presence. Currently, the company is heavily dependent on the U.S., Europe and Japan, which account for 80% of group revenue. The CFO said it is eyeing opportunities in Asia. 

Ayrle declined to give an exact investment figure but said the acquisition funding would be kept to cash flow and debt. He stressed that Thai Union is "not looking at very, very large acquisitions" and has a "very strong balance sheet to support the M&A in the pipeline."

In addition to the $1.4 billion boost through acquisitions, Thai Union's five-year growth strategy calls for another $2.9 billion organic increase in sales. That would push the total to $8 billion in 2020.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media