Thailand: Central Group to buy Dean & Deluca ops outside the US for $50m
Thailand’s retail giant Central Group is set to acquire Dean & Deluca’s operations outside the United States from luxury property developer PACE Development Plc for $50 million.
The deal is in the due diligence process, the company said on Monday.
Dean & Deluca is an American chain of upscale grocery stores founded in 1977. PACE acquired it through its subsidiary Pace Food Retail Co Ltd for $140 million in 2014.
Under the agreement, Central will be allowed to operate and expand the operations outside the United States while PACE still holds the ownership of the brand, operates the chain in the US and owns the right to produce and distribute consumer products under the Dean & Deluca trademark.
PACE chief executive Sorapoj Techakraisri said Central Group has the financial resources, expertise and knowledge to handle the day-to-day operations of stores, logistics and licensee relationship.
“Having Central as a partner will give Dean & Deluca a healthy growth globally,” he said.
PACE, which develops luxury residential properties including the tallest skyscraper MahaNakhon Tower, has reported operating losses for five consecutive quarters, which reached 1.7 billion baht ($50.90 million) last quarter.
In January, Goldman Sachs and Apollo Asia Sprint Holding Co injected about $235 million in MahaNakhon project. Currently, it is developing four projects worth 34 billion baht in total. The projects include the Ritz-Carlton Residences Bangkok, Mahasamutr Villa, Nimit Langsuan Condominium and Windshell Naradhivas Condominium.
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