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An interesting offer in the market. A private company costs $250 mil, is a pretty high price tag...
Singapore cupcake makers’ supply shop said to start sale process
SINGAPORE (May 26): Phoon Huat & Co, a Singapore company that’s been selling baking ingredients such as pie fillings and confectioners’ sugar since 1947, is seeking a buyer, people with knowledge of the matter said.
The company has sent out preliminary information to potential bidders and asked for first-round bids next month, according to the people.
The Wong family that controls Phoon Huat is seeking about $250 million from the sale, which includes the company’s real estate, one of the people said, asking not to be identified as the information is private.
...
http://www.theedgemarkets.com/sg/article...le-process
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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Phoon Huat is THE leading pastry supplies company locally.
Any baker will go to their shop. Their shops are all within walking distance from MRT.
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Red Man!
They sell lots of pastry related stuff
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Must be a case of no one in the family to take over leadership and everyone else wants a piece of the pie.
sent from my Galaxy Tab S
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05-06-2015, 11:05 AM
(This post was last modified: 05-06-2015, 11:06 AM by vesfreq.)
(27-05-2015, 09:45 AM)CityFarmer Wrote: An interesting offer in the market. A private company costs $250 mil, is a pretty high price tag...
Singapore cupcake makers’ supply shop said to start sale process
SINGAPORE (May 26): Phoon Huat & Co, a Singapore company that’s been selling baking ingredients such as pie fillings and confectioners’ sugar since 1947, is seeking a buyer, people with knowledge of the matter said.
The company has sent out preliminary information to potential bidders and asked for first-round bids next month, according to the people.
The Wong family that controls Phoon Huat is seeking about $250 million from the sale, which includes the company’s real estate, one of the people said, asking not to be identified as the information is private.
...
http://www.theedgemarkets.com/sg/article...le-process
Hi CF,
Just my take. Previously, I operated a bakery.
Honestly, 250m may not be a high price. Considering:
1. the Redman branding (since my mum's time and even earlier),
2. the Wilton brand for fondant and other fondant baking related accessories (those baking will know how ex this can be...),
3. one stop shop for everything baking (even when I was 5, I was already seeing redman in my fridge),
4. baking classes (for those who know nuts about fondant or baking, this is the place to go to).
5. Hassle free ready to bake materials. I don't know if this is sold elsewhere. But, PH sells convenient products like pre-mixes for sponge cake and bread. Super convenient. If your wife/gf suddenly seem to have good baking skills, this may explain why.
Like the other vb was saying, the accessibility is unmatched. The Toa Payoh outlet is like so near to the mrt. And, their corporate client base is impressive too. A friend in F&B would tell me PH, if its bakery. For other things, look elsewhere.
With Phoon Huat, even people with no baking knowledge also can bake.
PS: Hope this lands in proper hands and properly managed. Its a singapore icon, in a way.
The thing I am scared most is not nightmares or market crashes..... Its my greed that I fear the most.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.
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Unlisted company... 5 - 6X PE at most. That means their yearly earnings $50M?
Some baking friend told me the items expensive!!!
(05-06-2015, 11:05 AM)vesfreq Wrote: (27-05-2015, 09:45 AM)CityFarmer Wrote: An interesting offer in the market. A private company costs $250 mil, is a pretty high price tag...
Singapore cupcake makers’ supply shop said to start sale process
SINGAPORE (May 26): Phoon Huat & Co, a Singapore company that’s been selling baking ingredients such as pie fillings and confectioners’ sugar since 1947, is seeking a buyer, people with knowledge of the matter said.
The company has sent out preliminary information to potential bidders and asked for first-round bids next month, according to the people.
The Wong family that controls Phoon Huat is seeking about $250 million from the sale, which includes the company’s real estate, one of the people said, asking not to be identified as the information is private.
...
http://www.theedgemarkets.com/sg/article...le-process
Hi CF,
Just my take. Previously, I operated a bakery.
Honestly, 250m may not be a high price. Considering:
1. the Redman branding (since my mum's time and even earlier),
2. the Wilton brand for fondant and other fondant baking related accessories (those baking will know how ex this can be...),
3. one stop shop for everything baking (even when I was 5, I was already seeing redman in my fridge),
4. baking classes (for those who know nuts about fondant or baking, this is the place to go to).
5. Hassle free ready to bake materials. I don't know if this is sold elsewhere. But, PH sells convenient products like pre-mixes for sponge cake and bread. Super convenient. If your wife/gf suddenly seem to have good baking skills, this may explain why.
Like the other vb was saying, the accessibility is unmatched. The Toa Payoh outlet is like so near to the mrt. And, their corporate client base is impressive too. A friend in F&B would tell me PH, if its bakery. For other things, look elsewhere.
With Phoon Huat, even people with no baking knowledge also can bake.
PS: Hope this lands in proper hands and properly managed. Its a singapore icon, in a way.
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(05-06-2015, 03:09 PM)Contrarian Wrote: Unlisted company... 5 - 6X PE at most. That means their yearly earnings $50M?
Some baking friend told me the items expensive!!!
(05-06-2015, 11:05 AM)vesfreq Wrote: (27-05-2015, 09:45 AM)CityFarmer Wrote: An interesting offer in the market. A private company costs $250 mil, is a pretty high price tag...
Singapore cupcake makers’ supply shop said to start sale process
SINGAPORE (May 26): Phoon Huat & Co, a Singapore company that’s been selling baking ingredients such as pie fillings and confectioners’ sugar since 1947, is seeking a buyer, people with knowledge of the matter said.
The company has sent out preliminary information to potential bidders and asked for first-round bids next month, according to the people.
The Wong family that controls Phoon Huat is seeking about $250 million from the sale, which includes the company’s real estate, one of the people said, asking not to be identified as the information is private.
...
http://www.theedgemarkets.com/sg/article...le-process
Hi CF,
Just my take. Previously, I operated a bakery.
Honestly, 250m may not be a high price. Considering:
1. the Redman branding (since my mum's time and even earlier),
2. the Wilton brand for fondant and other fondant baking related accessories (those baking will know how ex this can be...),
3. one stop shop for everything baking (even when I was 5, I was already seeing redman in my fridge),
4. baking classes (for those who know nuts about fondant or baking, this is the place to go to).
5. Hassle free ready to bake materials. I don't know if this is sold elsewhere. But, PH sells convenient products like pre-mixes for sponge cake and bread. Super convenient. If your wife/gf suddenly seem to have good baking skills, this may explain why.
Like the other vb was saying, the accessibility is unmatched. The Toa Payoh outlet is like so near to the mrt. And, their corporate client base is impressive too. A friend in F&B would tell me PH, if its bakery. For other things, look elsewhere.
With Phoon Huat, even people with no baking knowledge also can bake.
PS: Hope this lands in proper hands and properly managed. Its a singapore icon, in a way. Your friend isn't wrong at all. The branded stuff like wilton and redman do cost quite a fair bit, but not close to an arm or a leg (thankfully).
Recently, an acquaintance started a bakery and they turned to m'sia supplies of materials. I suppose this speaks to some extent, the premium charged on PH's products and services.
What I quite like about PH is the customer service (to some extent). I'm always quite assured about being able to get what I want, if I were to ask any of the PH staff. Honestly, if one were to go to NTUC, this kind of assurance can be hard to find.
The thing I am scared most is not nightmares or market crashes..... Its my greed that I fear the most.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.
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Most F&B related companies are usually priced about 3x earnings privately. I believe they are asking a possible a high valuation. Anyone willing to spend some money at ACRA as case study? 
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(05-06-2015, 10:49 PM)mrEngineer Wrote: Most F&B related companies are usually priced about 3x earnings privately. I believe they are asking a possible a high valuation. Anyone willing to spend some money at ACRA as case study?
I didn't dig in more with ACRA, but base on the news report, the deal probably offered with valuable fixed assets i.e. freehold properties in good locations. That makes the valuation has a premium over industrial norm.
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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Ok hands itchy and some back of envelope calculations in 15mins..
11 stores (assuming all owned) - 20m
231a pandan loop (assuming 3 storey, google map 100m x 50m, neighbouring commercial price 5000/sqm) - 80m
Remaining Enterprise value - 150m
Still don't make sense.. Unless there are other properties included..
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