Thai listed seaweed processor and distributor Taokaenoi Food & Marketing Pcl has agreed to buy out California-incorporated organic seaweed producer GIM Factory Inc for $2 million to expand its market in North America and Europe.
It will acquire the entire 31,000 shares from GIM Factory’s existing shareholders at a price of $65 each, according to the company’s filing to the Stock Exchange of Thailand.
The US-based firm, established in 2014, is a producer and distributor of organic seaweed. Its factory in California, which commenced operations in January 2016, has two types of roasted seaweed production lines with an annual production capacity of 101 tonnes.
The transaction is expected to complete by November 24, said the filing. Taokaenoi plans to increase the registered capital of GFI after the transaction is completed. It is also looking for investments from foreign partners who will be permitted to hold up to 20 per cent stake.
Itthipat Peeradechanpan, CEO of Taokaenoi, said that it targets the revenue next year will increase more than 10 per cent from the projection of 5.2 billion baht ($157 million) this year thanks to its expansion into the US and Indonesia markets.
It also plans to spend around 20-30 million baht on buying new machinery in the factory and opening 10 new outlets in 2018.