SINGAPORE (Mar 2): Airline gateway services and food solutions SATS announced Monday it has acquired Monty’s Bakehouse UK for $48.4 million.
Based on its unaudited consolidated management accounts as at Jan 31, 2020, Monty’s Bakehouse Group has a book value of £9.8 million ($17.7 million) and a net tangible asset value of £9.8 million.
SATS says it will fund the purchase consideration, which will be paid in cash, through internal resources.
SATS intends to bring the products and capabilities from Monty’s Bakehouse Group – including two wholly-owned subsidiaries in the United Arab Emirates and the Netherlands – to its customers in Asia in order to meet the growing demand for buy-on-board meals and snacks
Incorporated in 2003, Monty's Bakehouse has been providing its range of sustainably-packaged, handheld snacks to a growing roster of premium airlines and other customer segments across the world.
SATS and Monty’s Bakehouse will establish an innovation centre in Singapore as a test bed for innovative food products for aviation catering, buy on board retail, and adjacent markets.
SATS will also work with Monty's Bakehouse to develop sustainable food packaging solutions that reduce cost, waste, and logistical complexities using minimal plastics.
This is in line with its goal of adopting sustainable food packaging by 2030.
“Joining a multi-billion-dollar market leader like SATS presents an exciting opportunity to accelerate the growth of Monty’s Bakehouse as well as support the growth of SATS in Asia,” says Matt Crane, chief executive officer of Monty’s Bakehouse.
“Monty's Bakehouse is a progressive innovator in aviation catering. With this transaction, SATS will now bring Monty’s product and packaging capabilities to airlines across Asia,” says Alex Hungate, president and chief executive officer of SATS.
Following the completion of the deal on Feb 29, the UK-based aviation food innovator will become a wholly-owned subsidiary of SATS Investments.
The acquisition is not expected to have any material impact on SATS’s net tangible assets per share and consolidated earnings per share for the current financial year.
As at 3pm, shares in SATS are trading 2.7% higher, or up 11 cents, at $4.14.
