Minor International acquires Sizzler brand
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Minor International Plc (Mint), an operator in the hospitality, restaurant and lifestyle sector, on Tuesday announced it would acquire a 100% stake in Singco Trading Pte, the intellectual property holder of the restaurant brand Sizzler, except in the US, Guatemala and Puerto Rico.
The acquisition is valued at 546 million baht (S$21 million).
Dillip Rajakarier, group chief executive of Minor, said the strategic move marks a milestone in Minor’s ambitious growth plans worldwide and reinforces its position as an industry frontrunner.
According to Mr Rajakarier, the company expects to close the deal by the third quarter of this year.
With the acquisition planned through MFG International Holding (Singapore) Pte, a subsidiary of Minor, the parent will gain control over Sizzler’s portfolio of franchises, including 64 restaurants in Thailand and another 10 in Japan. After the acquisition, Singco Trading Pte will be a subsidiary of Minor.
“The acquisition comes at an opportune time for Minor as we continue to build on our track record of success and strengthen our position in the global marketplace,” Mr Rajakarier said.
Minor has been operating Sizzler outlets for decades, but the acquisition is part of Mint’s three-year strategy called “Back to Growth”, as the pandemic is over and the company is moving head-on towards continued expansion, said Mr Rajakarier.
“This acquisition sends a clear signal to the global market that Minor Food, like our hotel business Minor Hotels, is back on a trajectory of remarkable growth and we’re constantly seizing opportunities on the international scale through expansion of our own well-recognised brands in various countries either through partnership or acquisition,” he said.
“The acquisition comes at an opportune time for Minor as we continue to build on our track record of success and strengthen our position in the global marketplace,”
“We have a proven track record of successfully expanding our own brands in various countries, including some of the most difficult countries to dominate like China and Singapore. By gaining the ability to shape Sizzler’s development, we can replicate our proven past achievements and unlock the full potential of the brand.”
With Minor’s deep industry knowledge, operational expertise and international partnership, Mr Rajakarier said the company looks set to introduce Sizzler to new audiences in other fast-growing markets around the world, such as Asean and the Middle East.
He said the acquisition is earnings accretive and is made possible by Minor’s robust financial standing and healthy balance sheet. With Sizzler’s annual royalty income of S$3.5-4 million and full profit contribution without royalty payments from its Thailand operations, the investment offers an attractive double-digit percentage return, demonstrating Minor’s commitment to delivering accretive value to its stakeholders, said Mr Rajakarier.
“We hope to be able to leverage our presence in the regions we have already strongly made a mark in, especially in Southeast Asia, as there has been interest from potential partners and existing franchisees of ours in those countries,” he said.
The firm can now explore new markets to capture new customers in other regions. Apart from owning and operating the restaurants, expansion can also occur through joint ventures or franchising, said Mr Rajakarier.
Following the acquisition, there will not be any drastic changes in operations because Thailand has always led the brand in terms of innovation and marketing, he said. The team in Thailand fully understands Sizzler’s value proposition that has proven it can differentiate the brand from competitors, said Mr Rajakarier.
“We are constantly revitalising our brand to stay most relevant and up to date to promptly respond to market change, and with this comes customisation in each market to meet the needs of different groups of customers,” he said.
Questions & Answers
Q.What is the value of Minor International's acquisition of the Sizzler brand's intellectual property holder?
What is the value of Minor International's acquisition of the Sizzler brand's intellectual property holder?
The acquisition of Singco Trading Pte, the intellectual property holder for Sizzler, is valued at 546 million baht, which translates to S$21 million. This figure excludes the brand's operations in the US, Guatemala, and Puerto Rico.
Q.Where does Minor International already operate Sizzler restaurants, and how many are there?
Where does Minor International already operate Sizzler restaurants, and how many are there?
Minor International currently operates Sizzler restaurants in Thailand and Japan. The company controls 64 restaurants in Thailand and an additional 10 locations in Japan.
Q.How will Minor International expand the Sizzler brand following this acquisition?
How will Minor International expand the Sizzler brand following this acquisition?
The firm plans to introduce Sizzler to new audiences in fast-growing markets like Asean and the Middle East. Expansion can occur through owning and operating restaurants, joint ventures, or franchising.
Q.What is the expected financial benefit for Minor International from this acquisition?
What is the expected financial benefit for Minor International from this acquisition?
The acquisition is expected to be earnings accretive due to Sizzler's annual royalty income of S$3.5-4 million, plus full profit contribution from its Thailand operations. This investment offers an attractive double-digit percentage return.
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