Food producer KIDO Group is set to acquire bun, and dim sum maker Tho Phat as part of its plans to become the leading food producer in Viet Nam.

It is not known who owns Tho Phat or what its stakes will cost KIDO.

The company will buy a 25 per cent stake in the first phase and increase it to 51-70 per cent in the second.

“Acquiring the Tho Phat brand is among important strategies of KIDO in order to diversify products and become the leading food producer in Viet Nam,” said Tran Le Nguyen, deputy chairman and general director of KIDO Group.

He said after the purchase KIDO’s revenues from the snacking business will go up to VND2 trillion (US$85 million) and profits to VND200 billion ($8.5 million).

Tho Phat has 4,000 points of sales in many retail channels.

KIDO, a leading food producer, accounts for 44.5 per cent of the country’s ice cream market and is also a big cooking oil producer.

The group has returned to the snack business and aims to become the second biggest player in the next three to five years. — VNS