Vinamilk Seeks to Buy Second U.S. Dairy Company in Growth Push
Vietnam Dairy Products JSC, Southeast Asia’s biggest milk producer by market value, is in talks to buy another U.S. company as it accelerates acquisitions to expand globally and drive revenue.
The company, known as Vinamilk, expects the deal to close as early as next year, Chief Executive Officer Mai Kieu Lien said in an interview, declining to give the name of the target or the deal value. The dairy firm, which already has a stake in California-based Driftwood Dairy, may increase its mergers and acquisitions war chest as it strives to achieve annual revenue of $3 billion by the end of 2017, she said.
“U.S. is the most difficult market,” Lien said at her office in Ho Chi Minh City. “If we are accepted in the U.S. market, it will be a big advantage for us, helping us to penetrate into other markets and boost our growth.”
Vinamilk is casting for acquisitions overseas as Vietnam’s dairy market remains underdeveloped compared with neighboring countries. Dairy consumption per capita was 19 liters per year in 2015, compared with 51 liters in Malaysia and 34 liters in Thailand, according to Saigon Securities JSC. The market hasn’t expanded as rapidly as Vinamilk anticipated when it set the revenue goal a few years ago, Lien said.
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