Taiwan’s health food maker TCI eyes acquisition for expansion

Acai bowl. Photo: Unsplash

TCI Co. is in talks with a health food maker about a potential acquisition this year that’s aimed at diversifying its production base, the company says.

The company hopes consumers will be more interested in the products it makes if it has factories outside China and Taiwan, executive deputy general manager William Liao said in an interview on April 17. TCI is a contract manufacturer of dietary supplements, health drinks and facial masks for other companies, according to its website.

“China will be our growth driver in the future as it is getting older and richer,” he said. “Our growth will benefit from China’s consumption upgrade.”

Liao said TCI may get a deal done this year if all goes well, but declined to provide details, including the target company’s name and location, or the planned size of a deal. TCI plans to use its own cash for the deal, and has NT$4 billion ($130 million) on hand, he said.

The company paid $29 million in October for a minority stake in Shanghai Baiyuete Biotechnology Co., according to data compiled by Bloomberg.

The average analyst price target for TCI is NT$585.75, implying a gain of 30 percent from Monday’s close, according to data compiled by Bloomberg. That’s the third biggest upside among 104 Taiwan-listed companies with a market cap more than $1 billion and covered by at least seven analysts as of April 22. The company has 13 buys, and no hold or sell ratings.

TCI rose 0.6 percent at the close, paring its drop this year to 13 percent.

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Bloomberg

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.