SINGAPORE (Feb 24): ABR Holdings, the company behind Swensen’s ice cream and Tip Top curry puffs is branching out into catering to seek growth.

ABR is among the names that have been doing well this year. While it has not been expanding rapidly, the company has a decent track record. It has remained profitable since 2004 and has paid an annual dividend of 2.5 cents a share for the last four financial years.

The counter closed at 76 cents on Feb 23, up 7% year to date. That gives it a yield of 2.6% and an earnings multiple of 23.5 times.

On Jan 18, ABR announced it had signed a memorandum of understanding to acquire three F&B businesses: Chilli Padi Nonya Catering, Chilli Padi Nonya Restaurant and Chilli Api Catering.

(See also: ABR Holdings signs MOU to acquire Chilli Padi Group)

Andrew Khoo, ABR’s director of business development, ranks the Chilli Padi group among the biggest caterers in Singapore. He says that caterers of this size, which typically have revenue in excess of $5 million, collectively hold a 25% share of the local market.

While the Chilli Padi acquisition price has not been fixed yet, Khoo says ABR has sufficient reserves to finance the purchase without taking on additional debt. As at Dec 31, 2016, it had net cash of $81.5 million. In its announcement, ABR said the sale price would also consider the audited net profit of the Chilli Padi group for the year ended Dec 31.

For more information about ABR Holdings’ acquisition of the Chilli Padi group as well as its other plans for expansion within the F&B industry, read more in this week’s copy of The Edge Singapore (Issue 768, week of Mar 5), available at major bookstores, 7-11 stores, and selected petrol stations.