Food and gateway services provider SATS is set to buy Thai food company Food City for US$15.9 million ($21 million), the company announced in a press release this week.
This will give SATS majority control or 85 percent of the food production company, which includes the 30,000-sqm Pathumthani food production facility. Following the acquisition, this facility will be configured to produce 90,000 ready-to-eat meals daily.
SATS has been investing in large-scale kitchens and food technologies to increase productivity and reduce wastage. Once the transaction is finalised, the company will own interests in 32 meal production facilities across Greater China, India, Indonesia, Japan, Macau, Malaysia, Maldives, Philippines, Singapore, and Thailand.
SATS Food Solutions chief Kerry Mok said the company will benefit on scale and location in the Thai food ecosystem as it tries to supply its growing customer base across the region, from aviation to food service and retail
“This acquisition will strengthen our range of food technologies—fresh, cook-chill, ambient and frozen, to serve different customers’ needs.” Mok added that the acquisition, along with investments in advanced technology to extend product shelf life, would allow SATS to further reduce food waste.