Hong Kong-based Nissin Foods Company Limited is acquiring ABC Pastry, an Australian manufacturer of frozen dumplings, for AU$33.7 million ($23.37 million).
Upon completion of the acquisition, ABC Pastry will become a wholly-owned subsidiary of Nissin Foods.
Based in Sydney, ABC Pastry is an experienced manufacturer of frozen dumplings with a reputable brand known to the Asian communities in New South Wales and Victoria, Australia. Nissin Foods says being a listed company could provide expertise and experience to the operational and financial management of ABC Pastry. The acquisition would contribute to ABC Pastry's long-term development and enable Nissin Foods to diversify its business portfolio.
Nissin Foods says the Australian frozen food market is expected to experience growth as frozen dumplings, in particular, have benefitted from the rising Asian migration to Australia. Additionally, there is growing demand for convenient, high-quality frozen foods, driven by busy lifestyles and a desire for international cuisine.
“The acquisition of ABC Pastry marks another milestone in our overseas market plan, soon after the joining of the Korean snack manufacturer Gaemi Food to the Nissin family in June,” says Kiyotaka Ando, executive director, chairman and CEO, Nissin Foods. “This latest acquisition will allow us to diversify our product offerings and distribution channels and aligns with our long-term corporate vision and strategy of strengthening our market presence in key overseas markets. By leveraging ABC Pastry's extensive local network and premium frozen products, Nissin Foods is well-positioned to enhance our connection with the local community and Australian consumers. We believe that the acquisition will reap significant operational and financial synergies through the integration of its business with ours, ultimately delivering increased value to shareholders.”