BANGKOK — Thailand's PACE Development Corporation plc (PACE), today, announced that it has entered into an agreement for the purchase of one of the world's most iconic gourmet food brands, Dean & DeLuca, as well as its global business and assets for US$ 140 million from Dean & DeLuca Holdings, Inc.
The move aims to boost PACE's capabilities as a developer of super-premium mixed use developments as well as fuel rapid global growth of the Dean & DeLuca gourmet food and beverage retailing business.
The purchase includes the supply chain and operations of eleven outlets and two commissaries in the United States as well as the licensing agreements covering 31 international locations, among them outlets in Japan, Singapore, South Korea, Thailand, Kuwait, Qatar, and the United Arab Emirates.
Mr. Sorapoj Techakraisri, Chief Executive Officer of PACE Development Corporation plc, said, "We want to capitalise on the global convergence of super-premium mixed-use property development and lifestyle brands. The best margins in the business of premium property development of the future is in offering customers a lifestyle — not just bricks and mortar. People want a total delivered environment where they feel good about living. It's why we must be able to bring into our properties some of the world's best lifestyle brands. It's a proven model already successfully deployed by thought-leaders in property and retail property development."
He said that the iconic Dean & DeLuca brand also has "extraordinary potential for rapid growth globally. We expect to open hundreds of new stores in the next two years to add to the current 42 stores, and to increase our global footprint from eight countries to more than 15 countries in the same period through licensing and our own investments."
Mr. Sorapoj said, "We want to fully maximise the potential of the Dean & DeLuca brand. Its equity is as distinct as it is strong, standing for the finest food and food-related products, while the business has a well-established track record of almost 40 years. There is also an outstanding organisation staffed with great talent. We intend to retain the current management team and to incentivise them in line with our vision."
He said, "PACE understands 'quality' and how to work with premium brands; it already has a portfolio of joint endeavours with premium global brands in lifestyle and specialty retailing and a track-record of success in this field, including fashion icon Vogue Lounge, multiple Michelin-star gourmet dining L'Atelier de Joel Robuchon, and Ritz-Carlton Residences, Bangkok, which was recently recognised at the 2014 South East Asia Property Awards with the 'Best Condominium Development – South East Asia' Award."
Mr. Sorapoj said the Dean & DeLuca acquisition strengthens PACE by "generating another sustainable revenue stream that is less cyclical than property development and less prone to external economic shocks."
The funding for the acquisition is from PACE internal cashflow as well as a loan from Siam Commercial Bank plc.
Mr. Arthid Nanthawithaya, Senior Executive Vice President, Siam Commercial Bank, plc, said, "We are excited by the enormous global prospects for this visionary Thai company and are pleased to support PACE in their important endeavour."
For more information: N.Juthaprateep, PACE Development plc, Tel: +662-118-9599
Source: PACE Development Corporation plc.
