Thailand's Richest Man Is Set to Buy This American Food Giant in a $1B Deal

[webfact]

Thailand's Richest Man Is Set to Buy This American Food Giant in a $1B Deal

by Reuters

 

It makes single-serve frozen entrees from brands such as Atkins, Boston Market, and Chili’s

 

BANGKOK: -- Thailand’s Charoen Pokphand Foods (CPF) said it will acquire U.S. frozen-food producer Bellisio Parent for $1.075 billion, paving the way for an entry into the world’s largest food market.

 

The acquisition is in line with CPF’s strategy to expand into high-potential markets, CEO Adirek Sripratak said in a statement.

 

CPF  CPOUF -18.84% , controlled by Thailand’s richest man Dhanin Chearavanont, signed a purchase agreement on Thursday with seller Bellisio Consolidated Equity, the statement said.

 

Full story: http://fortune.com/2016/11/17/frozen-food-thailand-charoen-pokphand-bellisio-parent/

 

-- FORTUNE 2016-11-18

[Brer Fox]

Another example of Thai investors looking for safer and more rewarding opportunities outside their own country. Why would this be I wonder. The list is growing.

 

[Thechook]

CP is rubbish and cant even be called food.

[Prbkk]

35 minutes ago, Thechook said:

CP is rubbish and cant even be called food.

 

Yes, a perfect match for the US fast food industry/market.

[LomSak27]

1 hour ago, Prbkk said:

Yes, a perfect match for the US fast food industry/market.

 

Fast Food?  If you read it is frozen and likely fish and shrimp plus fruit. Geez read before you spout.   It likely has something to do with making it harder to boycott fsh products from Thailand.

[chiang mai]

1 hour ago, Brer Fox said:

Another example of Thai investors looking for safer and more rewarding opportunities outside their own country. Why would this be I wonder. The list is growing.

 

 

For goodness sake! The man's not an investor he's someone who has built a business empire that now needs to grow past Thailands borders hence he's now competing globally. I'm sorry to ruin your opportunity to bash all things Thai but you simply don't understand the picture!

[trogers]

A move in preparation for the Trump-era...

[jonclark]

Good to see such a health dose of foreign investment in the US. See what happens when foreigners can compete on the same footing as the natives - cash starts rolling in, jobs are created and taxes get collected. Thai money making the US richer!

[Wilsonandson]

Some great culinary cuizine! Yummy!

[Prbkk]

39 minutes ago, LomSak27 said:

 

Fast Food?  If you read it is frozen and likely fish and shrimp plus fruit. Geez read before you spout.   It likely has something to do with making it harder to boycott fsh products from Thailand.

 

Yes, it's fast food: it doesn't matter whether it's take out or eat in, it's still fast: formulaic, pre-packaged, low quality, 

One of the subsidiaries was fined hundreds of thousands $$$$ for underpaying and pressuring staff in Australia prior to withdrawing from the country completely .

To recap: FAST

[rijb]

A snobbish definition.   "fast' doesn't always equate to low quality.  It's more about convenience. 

[fruitman]

1 hour ago, chiang mai said:

 

For goodness sake! The man's not an investor he's someone who has built a business empire that now needs to grow past Thailands borders hence he's now competing globally. I'm sorry to ruin your opportunity to bash all things Thai but you simply don't understand the picture!

 

There's no room left to grow in Thailand, he already has it all.

 

How will mr Trump boycot his exports to the USA if he owns american companies??

[craigt3365]

1 hour ago, LomSak27 said:

 

Fast Food?  If you read it is frozen and likely fish and shrimp plus fruit. Geez read before you spout.   It likely has something to do with making it harder to boycott fsh products from Thailand.

Actually, now that it's a US company, lawsuits should be easier????  Sure hope so.

[chiang mai]

1 minute ago, fruitman said:

 

There's no room left to grow in Thailand, he already has it all.

 

How will mr Trump boycot his exports to the USA if he owns american companies??

 

Exactly.

[GAZZPA]

1 hour ago, LomSak27 said:

 

Fast Food?  If you read it is frozen and likely fish and shrimp plus fruit. Geez read before you spout.   It likely has something to do with making it harder to boycott fsh products from Thailand.

Frozen food can be fast food, have you heard of microwaves? And why on earth would a businessman want to buy into political nonsense regarding the boycott of shrimp/ fish products? And just because a Thai owns the company what makes you think he will be immune to the boycott? Perhaps you should read and have a think before typing.

 

I would imagine that the commercial viability of the company stacks up and looks attractive to a business savvy billionaire, it will be as simple as that. if not he would not be slapping a billion usd on the table.

 

Seems to be an ever growing trend of foreign companies buying up Western companies. In my view it is a worrying trend and the World needs a bit of balance before the West loses its grip on the World stage.

[seancbk]

3 hours ago, Brer Fox said:

Another example of Thai investors looking for safer and more rewarding opportunities outside their own country. Why would this be I wonder. The list is growing.

 

 

 

Don't you mean another example of a very successful Thai business that has grown so large (in a developing country) that it can afford to expand into global markets and purchase a competitor in the US market for more than $1 billion. 
 

 

[madmitch]

Doesn't quite make up for them missing out on Birds Eye a couple of years back.

[fruitman]

Many americans love the term "made in the usa" and buy those products for that term.

 

Now what if the new slogan is "owned by a Thai or chinese", will they boycot it?  If so this businessman put a billion$ on the gamblingtable. This might be a smart move from him but maybe not, times are changing now so we'll see what happens next.

 

He is fast though by buying it now but mr Trump (and the americans) will reply soon i guess.

 

I've seen more cases like this where European billionaires went overseas but got cheated out badly and finally sold the business with a big loss.

 

Guess the thai rice will be in the american stores soon on large scale. Evenso the Thai chicken/pork/prawn/fish.

[Dustdevil]

1 hour ago, Prbkk said:

 

Yes, it's fast food: it doesn't matter whether it's take out or eat in, it's still fast: formulaic, pre-packaged, low quality, 

One of the subsidiaries was fined hundreds of thousands $$$$ for underpaying and pressuring staff in Australia prior to withdrawing from the country completely .

To recap: FAST

I doubt you've ever been in an American supermarket or tried any of the frozen food. Next you'll be saying the fresh produce is inferior. FYI, there are supermarkets that are entirely organic. I've spent 15 years in Europe, 19 in the Middle East and six in Asia, not counting about a hundred subsequent visits. Supermarket food in the U.S. is both far more varied and better than anywhere else. Sorry, Commonwealth snobs.

[silent]

2 hours ago, chiang mai said:

 

For goodness sake! The man's not an investor he's someone who has built a business empire that now needs to grow past Thailands borders hence he's now competing globally. I'm sorry to ruin your opportunity to bash all things Thai but you simply don't understand the picture!

 

He might reconsider now and wait to get this at bargain basement price

 

[bark]

2 hours ago, jonclark said:

Good to see such a health dose of foreign investment in the US. See what happens when foreigners can compete on the same footing as the natives - cash starts rolling in, jobs are created and taxes get collected. Thai money making the US richer!

You are too funny.

This is an existing USA Business. He is only buying it. No new jobs, Thai money going to the ex owner of the company.

And all profit going back to Thailand, instead of staying in the States.

Your bubble just broke, sorry.

 

[IAMHERE]

2 hours ago, jonclark said:

Good to see such a health dose of foreign investment in the US. See what happens when foreigners can compete on the same footing as the natives - cash starts rolling in, jobs are created and taxes get collected. Thai money making the US richer!

Taking over another food line doesn't create any jobs, doesn't created any more taxes getting collected, unless the Thai overpays there isn't anyone getting richer either.

[Prbkk]

14 minutes ago, Dustdevil said:

I doubt you've ever been in an American supermarket or tried any of the frozen food. Next you'll be saying the fresh produce is inferior. FYI, there are supermarkets that are entirely organic. I've spent 15 years in Europe, 19 in the Middle East and six in Asia, not counting about a hundred subsequent visits. Supermarket food in the U.S. is both far more varied and better than anywhere else. Sorry, Commonwealth snobs.

 

Well, I was in an American supermarket 3 hours ago( -and have been in dozens before) so you are 100% wrong on that.

The issue is not the quality of the fresh produce but rather the proliferation of fast food/ready meals/packaged crap ...and the efforts to export same to the rest of the world, fortunately with more limited success these days.

 

 

 

[craigt3365]

2 minutes ago, Prbkk said:

 

Well, I was in an American supermarket 3 hours ago( -and have been in dozens before) so you are 100% wrong on that.

The issue is not the quality of the fresh produce but rather the proliferation of fast food/ready meals/packaged crap ...and the efforts to export same to the rest of the world, fortunately with more limited success these days.

Nobody is forced to eat that stuff.  We lived in the US for many years and never bought any of that stuff.  Luckily, my wife loves to cook.  All fresh, homemade stuff.

 

Sadly, many in the US don't have that luxury with dual income households and some holding 2 jobs.  Can't blame the US for exporting that to the rest of the world.  They are doing the same all by themselves.  Especially here in Thailand will all the deep fried, sugar laden junk that's sold on the streets.  Here are some pics I took right outside a school here.  Horrible stuff.

 

[jonclark]

12 minutes ago, IAMHERE said:

Taking over another food line doesn't create any jobs, doesn't created any more taxes getting collected, unless the Thai overpays there isn't anyone getting richer either.

 

Sorry my mistake - Clearly foreign investments are bad for an economy - My bad. 

 

[Mickmouse1]

4 hours ago, Brer Fox said:

Another example of Thai investors looking for safer and more rewarding opportunities outside their own country. Why would this be I wonder. The list is growing.

 

To increase their market share through exporting more if their own products ,ie seafood and chicken/chicken parts.

CPF will indeed creat more jobs at home through such an acquisition ?

[KittenKong]

4 minutes ago, jonclark said:

 

Sorry my mistake - Clearly foreign investments are bad for an economy - My bad. 

 

 

Buying up existing companies isn't really foreign investment any more than foreigners buying property is. It's selling the family jewels and it happens constantly in the UK. Sensible countries like France put obstacles in the way of it happening there, yet their own companies own a lot of foreign businesses.

 

Desirable "foreign investment" is when an overseas company starts a completely new venture, building factories from nothing, creating new products and markets, and making entirely new jobs. Buying up an existing company usually involves the opposite. Look at what Kraft did to Cadbury.

[Enoon]

 

Nothing "off the cuff" here, all part of the Master Plan.

 

March 2014:

"Thailand's CP Foods aims for foreign ops to make up 75 percent of revenue"

"The company wants overseas revenue to make up 75 percent of the total by 2018 from 65 percent now"

"CPF, which aspires to be the kitchen of the world, has been present in Vietnam, the Philippines and

Malaysia for more than 20 years, as well as in China, India, Russia and Turkey."

 

And the UK:  http://www.cpfoods.co.uk/ (Factory in Newmarket, products in Co-Op)

 

"With vision to be “Kitchen of the World”, the company is committed to fulfill the longing of quality food products that are nutritious, hygienic and with food safety integrity from consumers whose satisfaction and habit have change from time to time."

 

http://www.cpfworldwide.com/contents/investors/download/ir-newsletter/M-news0414.pdf

 

 

 

[Enoon]

1 hour ago, Mickmouse1 said:

To increase their market share through exporting more if their own products ,ie seafood and chicken/chicken parts.

CPF will indeed creat more jobs at home through such an acquisition ?

 

Really?

 

Multinationals buy their raw materials from the cheapest suppliers they can, or they own the supply in those areas that can produce the raw materials most "economically". 

 

Is that/will that be Thailand, in either case?

 

 

 

 

 

[williamgeorgeallen]

pretty sure the richest man in thailand just died. guess people dont like talking about him being  so incredibly rich.