Singer pins hope on M&A deal
SET–listed Singer Thailand Plc says its merger and acquisition of a local company will materialise in the first quarter of next year.
The deal will help Singer Thailand, one of the oldest electrical appliance distributors in Thailand, reach its growth target, said chief executive officer Boonyong Tansakul.
Singer is a pioneer in the hire-purchase business, selling sewing machines to Thai consumers since 1905 before registering as Singer Thailand in 1969.
Mr Boonyong said the company was looking for a small or midsized firm with a value of between 200 and 300 million baht. It must be involved in both manufacturing and distribution, which could help support the expansion of Singer and add revenue within one or two years.
According to Mr Boonyong, M&A is a strategic shortcut for the company to increase sales revenue since the current economic situation and intense competition are factors impeding revenue growth.
Sales of Singer in the first half of the year faced a decline of 5% year-on-year to 1.85 billion baht. However, the company is confident about achieving its revenue target of 4 billion baht this year, posting a rise of 10-15%.
Mr Boonyong said that Singer's head office in the US also wanted its overseas operations to expand under the M&A format.
He added that Singer wanted to broaden operations to cover Cambodia, Laos, Myanmar and Vietnam to capitalise on the formation of the Asean Economic Community next year.
Once the expansion is successful, Singer Thailand would be an authorised supplier of products to these markets. Cambodia will be the first market as Singer does not have a manufacturing plant there.
Mr Boonyong said he expected the economy to pick up later this year and help stimulate consumer spending.
The increase in public spending and the quick disbursement by the government will boost the economy in the last quarter of the year.
Singer shares closed on the Stock Exchange of Thailand at 17.80 baht, down 40 satang, in trade worth 28.8 million baht.