Sats has acquired an additional 40% stake in Chinese aviation food manufacturer, Nanjing Weizhou Airline Food Corp (NWA), for RMB312.6 million ($58.3 million).
This brings Sats’ total stake in Nanjing-headquartered NWA to 90% after it first acquired a 50% stake in 2019.
According to Sats, the acquisition will position the group to tap on the shift towards the adoption of high-quality aviation meals among Chinese carriers and enable Sats to integrate NWA’s frozen meal production capabilities into Sats China’s portfolio. NWA will also complement Sats’ operations in China with its local insight and network.
"NWA has built something exceptional in China's aviation food sector: a proven frozen meals platform with the operational capability, customer relationships, and production know-how to grow at scale,” says Samuel Koh, CEO of Sats Food Solutions.
“Its core competency lies in its innovation capabilities that seamlessly combine culinary skills with advanced food technology to deliver authentic Chinese flavours onboard aircraft,” he adds.
Consolidating our ownership allows us to bring NWA and SATS China together as one cohesive unit, driving efficiencies that benefit both operations.”
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NWA’s founder and general manager, Luo Bo, noted the “strong foundation” built by both parties. “This acquisition opens an exciting new chapter, and I look forward to continue working with Sats to grow NWA and Sats China into businesses that serve the evolving needs of Chinese aviation at home and abroad,” he adds.
Shares in Sats closed 3 cents higher or 0.91% up at $3.32 on May 6.
