Jumbo Group acquires 75% stake in Kok Kee Wanton Noodle for $ 2.1 million

Food and beverage company Jumbo Group reportedly intends to acquire a 75% stake in popular Kok Kee Wanton Noodle meatball noodle stand for $ 2.1 million in cash and shares.

The acquisition comes after Jumbo reported a net loss of approximately S $ 8.2 million for the fiscal year ended September 30 last night (November 26), which contrasts with its net profit of S $ 11.7 . millions. Last year.

In addition, sales fell 36.5%, from S $ 153.6 million the previous year to S $ 97.6 million, mainly due to the effects of Covid-19.

According to The Business Times, Jumbo will use its internal resources to pay 70% of the purchase price in cash.

The remaining 30% is covered by the allotment and issue of giant shares according to an agreed formula. The purchase price is paid in two lump sums.

First inorganic expansion of the Jumbo group

Once the acquisition is complete, Kok Kee owner Leong Goh Lian will continue to own the remaining 15% of the shares.

Jumbo Group, which has a booth of F&B brands such as Jumbo Seafood and Ng Ah Sio Bak Kut Teh, plans to expand Kok Kee’s network locally.

It also aims to introduce the “local heritage plaque” of absurd with that beyond the coast of Singapore.

Kok Kee Wanton Noodle started out as a modest stall in Lavender Food Square in 1985.

It then moved to Jalan Besar and temporarily ceased operations from 2016 to 2019 before reopening at its current location at 30 Foch Road.

According to Jumbo, the company is continually looking for ways to expand its brands and concepts to strengthen its position in the local food and beverage industry.

“The food and culture of street vendors is an integral part of the life of all Singaporeans. Supporting and participating in an everyday core concept will accelerate the advancement of Jumbo in the local mass market, ”Jumbo said.

This proposed acquisition will allow Jumbo to diversify its revenue stream rather than focusing solely on its existing full-service restaurants.

“Jumbo is cautiously optimistic about the future prospects for Kok Kee and the company, as it is primarily aimed at the local mass market and is good for a quick meal or take out,” the company said.

Selected image source: Jumbo Group / Miss Tam Chiak