Bangkok--18 Nov--Bangkok Public Relations
· Aims to capitalise on global convergence of super-premium mixed-use property development and lifestyle brands to enhance value of property offerings
· Aims for global growth with presence in 15 countries and hundreds of stores in two years
· “Thai companies must go global to be strong with onset of AEC and greater regional competition” – Sorapoj Techakraisri, CEO PACE
· Siam Commercial Bank: “We are excited by the enormous global prospects for this visionary Thai company and are pleased to support PACE in their endeavour”
PACE Development Corporation plc (PACE), today, announced that it has entered into an agreement for the purchase of one of the world’s most iconic gourmet food brands, Dean & DeLuca, as well as its global business and assets for US$ 140 million (approximately Bht 4,550 million) from Dean & DeLuca Holdings, Inc.
The move aims to boost PACE’s capabilities as a developer of super-premium mixed use developments as well as fuel rapid global growth of the Dean & DeLuca gourmet food and beverage retailing business.
The purchase includes the supply chain and operations of eleven outlets and two commissaries in the United States as well as the licensing agreements in 31 international locations, among them four outlets in Thailand, as well as outlets in Japan, Singapore, South Korea, Kuwait, Qatar, and the United Arab Emirates.
Mr. Sorapoj Techakraisri, Chief Executive Officer of PACE Development Corporation plc, said, “We aim to capitalise on the global convergence of super-premium mixed-use property development and lifestyle brands. The high margins in the business of premium property development of the future will be in offering customers a lifestyle – not just bricks and mortar. People want a total delivered environment where they feel good about living. It’s why we must be able to bring into our properties some of the world’s best lifestyle brands. It’s a proven model already being successfully deployed by thought-leaders in property and retail property development.”
He said that the iconic Dean & DeLuca brand also has “extraordinary potential for rapid growth globally. We expect to have stores numbering in the hundreds within only two years, up from the current 42 stores, and to increase our global footprint from eight countries at present to more than 15 countries in the same time, primarily through licensing and company’s own store investment”
Mr. Sorapoj said, “Dean and DeLuca is one of the world’s great brands and we want to fully maximise the potential embedded in the brand. The brand has an equity that is as distinct as it is strong, standing for the finest food and food-related products, while the business has a well-established track record of almost 40 years. There is also an outstanding organisation staffed with great talent. We intend to retain the current management team and to incentivise them in line with our vision”
He said, “PACE understands ‘quality’ and knows how to work with premium brands; it already has a portfolio of joint endeavours with premium global brands in lifestyle and specialty retailing and a track-record of success in this specialised field, including fashion icon Vogue Lounge, multiple Michelin-star gourmet dining L’Atelier de Joël Robuchon, and PACE’s Ritz-Carlton Residences, which was recently presented the ‘Best Condominium Development - South East Asia’ Award at the 2014 South East Asia Property Awards.”
Mr. Sorapoj noted that the approach of the ASEAN Economic Community created major opportunities for Thailand-based companies and that he “firmly believed companies must go global to protect their business from the greater regional competition that will come with the arrival of the AEC.”
Mr. Sorapoj said the Dean & DeLuca acquisition strengthens PACE by “generating another sustainable revenue stream for PACE that is less cyclical than property development and less prone to external economic shocks.”
He added that the global acquisition of the Dean & DeLuca business will also boosts PACE’s ability to attract and retain the best talent by raising the ceiling on staff career growth prospects within PACE.
The funding for the acquisition is from PACE internal cashflow as well as a loan from Siam Commercial Bank plc.
Mr. Arthid Nanthawithaya, Senior Executive Vice President, Siam Commercial Bank, plc said, “We are excited by the enormous global prospects for this visionary Thai company and are pleased to support PACE in their important endeavour. The deal highlights SCB’s leading M&A franchise, extensive industry knowledge and expertise in structuring and executing deals. SCB has always strived to provide for customers’ every financial need and is strongly committed to maximise customers’ satisfaction as a total solution financial partner.”
In a related development, PACE Development Corporation plc also informed that it will increase to 100 percent its ownership of MahaNakhon mixed-use development as well as its related businesses through a share swap arrangement with Industrial Buildings Corporation (IBC). IBC will be taking a 20.9% holding in PACE Development Corporation plc in exchange for its holdings in MahaNakhon and related businesses.