Singapore-based Neo Group is planning to acquire surimi-based seafood products manufacturer Thong Siek Holdings (TS Group) in the country.
The company will acquire 55% stake in TS Group in a deal worth $5.55m, DealStreetAsia reported.
TS Group comprises four firms that manufacture surimi-based products including DoDo brand of fish ball and crab sticks.
Currently, TS Group operates two manufacturing facilities in Senoko, Singapore and Johor Bahru, Malaysia.
Besides Singapore and Malaysia, TS Group's products are supplied to 22 countries across the world including Asia, Australia, Europe and the US.
Commenting on the deal, Neo said: "We are pleased to have reached another key corporate milestone with this major acquisition. This upstream acquisition is in line with our value proposition as a fully-integrated catering solutions provider, enhancing our supply chain and providing a vertical integration process that will expand our manufacturing business."
Upon completion of the acquisition, TS Group will target Malay-Muslim consumers by offering halal product lines.
Besides revamping DoDo brand of frozen foods and introducing a product line, TS Group will bolster its position in the Singapore and the Malaysian markets.