KUALA LUMPUR (Dec 21): DKSH Holdings (M) Bhd is acquiring the entire equity interest in chilled and frozen products distributor Auric Pacific (M) Sdn Bhd for an initial price of S$157.67 million (RM480.91 million) from Singapore-based Auric Pacific Group Ltd (Auric Group) to complement its existing fast moving consumer goods (FMCG) market expansion services.

Auric is principally involved in the supply of bakery and confectionary materials as well as other general products.

In a filing to Bursa Malaysia today, AmInvestment Bank Bhd, on behalf of DKSH, said the final purchase price shall be the sum of the initial purchase price less the completion net debt.

It said the range of indicative values for the entire equity interest in Auric was between S$148 million (RM451 million) and S$171 million (RM522 million).

On the rationale for the acquisition, DKSH said it is line with its horizontal integration strategy to make further strategic investments in its Market Expansion Services.

"This represents a gateway for DKSH to further increase its product portfolio which creates a synergy effect and is expected to generate positive earnings to the company," it said.

DKSH said as it and Auric are involved in similar FMCG business, the acquisition will create enhanced scale and synergies.

"In addition, DKSH will be able to acquire Auric's business of manufacturing melange, which will create additional income stream for the DKSH Group," it said.

At 2pm, DKSH was up 4.65% or 10 sen to RM2.25 with 144,900 shares traded.