KUALA LUMPUR (Feb 12): Hextar Industries Bhd (KL:HEXIND) said it is acquiring a 51% stake in food and beverage retail firm Woodpeckers Group for RM177.5 million in cash.

The acquisition will provide Hextar Industries a footprint in the frozen dessert market, the company said in a statement, noting that Woodpeckers is the master franchisee of the llaollao frozen yogurt chain in Malaysia with 131 outlets.

The acquisition includes an average annual profit guarantee of RM29 million over three years, the company added.

Hextar Industries group managing director Benny Ang said the acquisition will help to “accelerate scale, enhance operational efficiencies and unlock sustainable long-term value in Malaysia’s dynamic food and beverage landscape.”  

Woodpeckers chairman Tan Kai Young concurred with Ang. “With enhanced scale, capital support, and strong strategic alignment, we are confident of accelerating our growth ambitions, strengthening the brands Malaysians trust, and creating long-term opportunities for our people as we build the next generation of innovative food and beverage concepts,” he said.

According to the statement, Woodpeckers Group posted a net profit of RM30.3 million in the financial year ended 2024 (FY2024), on revenue of RM150.64 million.

Hextar Industries' proposed acquisition of the 51% stake in Woodpeckers Group comes after the company recently announced that it is seeking shareholders' approval to diversify into the food and beverage retail business and to dispose of its stakes in three of its fertiliser manufacturing subsidiaries.

Hextar Industries’ share price closed 1.5 sen or 4.84% higher at 32 sen, valuing the company at RM892.9 million.