Aberdeen Holdings begins inorganic growth drive with Rs. 1 b acquisition

Wednesday, 19 November 2014 00:28 -     - {{hitsCtrl.values.hits}}

  •  Firm expresses confidence it will repeat its business turnaround successes

Aberdeen Holdings yesterday announced it has acquired eight companies from Expolanka Holdings Plc – Expolanka Teas Ltd., Expolanka Plantation Ltd., World Spice and Teas Ltd., Castle Commercial Ltd., Neptune Holdings Ltd., Expolanka Pharmaceutical Ltd., Bio Extracts Ltd. and Saffron Foods Ltd. The acquisition was a part of Aberdeen’s inorganic growth drive and the acquisition cost of the eight companies plus a property amounts to Rs. 1.16 billion. “We see a strong business case and value proposition for the companies we have just acquired. We have a robust strategy and management expertise to ensure these companies deliver strong performance and superior shareholder value,” said Aberdeen Holdings Chief Executive Officer Omar Kayaam. “This is an important opportunity for us to grow in the tea, herbal pharmaceuticals and food sectors. Expolanka Teas is a leading exporter of teas and has a strong international market presence. It has a strong track record and we are confident we will be able to have the company reach and exceed its level of potential in a relatively short period of time. “Bio Extracts, the producers of the Baraka brand of herbal pharmaceuticals and food supplements, has secured global and local market recognition and with the increasing levels of health consciousness we see tremendous opportunities to rapidly grow this business. The investment in Saffron Foods will generate good synergies when working together with our existing business of Lanka Premier Food, the operators of the brand Paan Paan. Our investments are a result of a detailed due diligence process and an in-depth understanding of the respective business models.” Aberdeen Holdings is keenly looking for other similar opportunities that have a convincing business case for acquisition, and expects strong growth across all its existing businesses in the financial year 2015. Aberdeen Holdings is a diversified conglomerate with interests in commodity trading, packaging, aviation, solar energy, and Islamic finance and acts as a platform for strategic equity investments. The companies it invests in operate independently with key strategic direction from the holding level. The company boasts of a multi-billion rupee annual turnover and will see an immediate boost with the new acquisitions. Aberdeen CEO Kayaam has previously held senior management roles at a host of multinational entities and has worked overseas and in Sri Lanka. The present Board is constituted of a good mix of entrepreneurs and professionals with excellent exposure and experience and is represented by Su-ayid Ismail (Chairman), Osman Kassim, Sattar Kassim, Farook Kassim, Shafik Kassim, Omar Kayaam and Hiran Embuldeniya.