Coffeeshop operator Kimly acquires a majority stake in Tenderfresh for $ 54 million


Kimly, a coffee operator listed on the Catalan list, said today (May 11) in a Singapore Exchange presentation that it has signed an acquisition agreement with Tenderfresh the founders Soh Chun King, Koh Siew Tin and Chew Kian Ho.

It acquires a 75% stake in Tenderfresh’s self-produced food business for US $ 54 million, as part of its efforts to expand its presence in the local halal food industry and regionally.

Of that figure, $ 38 million will be paid in cash, while the remaining $ 16 million will be met with the issuance of 51.2 million shares of Kimly at an issue price of 31.24 cents. .

The proposed acquisition includes central kitchens, restaurants, kiosks, food stalls, plants and equipment, trademarks and customer relations, which operate through various entities.

Kimly has also granted a put option to Tenderfresh sellers, who in turn have granted Kimly a put option. Both the put and buy options are “perennial” and will allow Kimly to acquire the remaining 25% of Tenderfresh five years after the completion date.

Kimly expects the proposed acquisition to be completed in the next five months.

Prior to the completion of the operation, Tenderfresh’s business will be restructured and consolidated. A new entity will be incorporated to maintain the business, which Kimly will own 75%.

Advancing in the halal industry

Founded in 1979, Tenderfresh specializes in fried or roasted spring chickens and chicken wings.

It began as a mobile stop at the Whitley Road Hawker Center in the 1970s, but moving rapidly through 2020, it owns 18 F&B brands and 64 outlets, including food kiosks, restaurants, shops and original equipment manufacturing. (OEM).

Some of its brands include Amigo’s, ToriGo !, Tenderbest, Golden Rooster and chicks.

It also operates a 25,000-square-foot central kitchen that serves about 140 brands and outlets. The kitchen also supplies semi-finished products at its own outlets.

“As more food and beverage operators seek to outsource their food production to reliable OEM partners to reduce labor needs, the group believes this will generate new revenue streams,” Kimly said.

In addition, since Tenderfresh’s central kitchen has halal certification, Kimly believes she can take advantage of this and her extensive network in the halal food market to further advance the industry.

Singapore’s brand and Halal standard are also recognized by Brunei, Indonesia and Malaysia, Kimly noted.

This new acquisition is not their first meeting together. In November last year, Tenderfresh partnered with Kimly to develop Coffee shop, a new concept of halal cafeteria in Clementi.

This is also not Kimly’s first acquisition. In June 2020, he completed the acquisitions of six food outlets for $ 35.5 million, which consists of two coffee shops, three industrial dining units and a restaurant unit.

Over the years, many other larger F&B players also buy from smaller operators.

Some other notable acquisition agreements in the local F&B industry are Jumbo Group and Kok Kee Wanton Noodle for $ 2.1 million in cash and shares; as well as the acquisition of Kay Lee Roast Meat by electronic firm Aztech group for $ 4 million, which only took 10 minutes to seal the deal.

Featured Image Credit: Kimly Coffeeshop / Daniel Food Diary

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