- SATS Investments, wholly owned by SATS has become the parent company of Monty’s Bakehouse U.K.
- The procurement was completed after the signing of a sales-and-purchase agreement on the 29th of February
Singapore based leading ground-handling and in-flight catering service provider â€“ SATS has reportedly acquired U.K. headquartered aviation food services enterprise â€“ Monty’s Bakehouse UK for S$48.4 million (US$34.8 million approx.)
Citing reliable sources, the transaction will be financially completed through internal resources and will be paid in cash. Additionally, the purchase comprises of deferred earn-out consideration of nearly US$12.83 million dollars payable over a period of three years.
Apparently, with the successful purchase of the aviation food company, SATS aims at extending the products of Monty’s Bakehouse to the Asian customers in order to meet the rapidly rising demand for buy-on-board meals and beverages. Additionally, the company will also look at improving its offerings for its customers along with generating new customer segments.
Reportedly, SATS and Monty’s Bakehouse are likely to establish an innovation facility in Singapore to test innovative food items for aviation catering, buy-on-board service and adjacent market trends.
Notably, to meet the goal of using sustainable food packaging solutions by 2030, SATS will consequently work with the U.K. aviation food enterprise to develop novel, environmentally friendly food packaging solutions that help in reducing wastage, cost, and logistical difficulties.
For the record, Monty’s Bakehouse develops sustainably wrapped snacks for premium airline companies and other customer segments across the globe. In a statement by SATS, the transaction will not affect the tangible assets per share and earnings per share of the company for the prevailing financial year.
Founded in 1972 in Singapore, SATS is a major food and gateway services provider across Asia. The company’s wide array of services comprises of airline catering, airfreight handling, ramp handling, passenger services, aviation security services, baggage handling, aircraft interior and exterior cleaning and cruise center management. The company operates in more than 60 locations across the Middle East and Asia Pacific.
Source Credits: https://www.businesstimes.com.sg/companies-markets/sats-acquires-uk-aviation-food-company-for-%C2%A3267m