Germany’s Metro Group has acquired a food service distribution company with a wide network across Southeast Asia’s big cities, including Ho Chi Minh City, raising speculation it will not leave Viet Nam after selling the cash and carry business in the country.

Metro has bought the Classic Fine Foods Group (CFF), a leading premium food service distribution player headquartered in Singapore, from private equity firm EQT under a US$290 million deal, plus an earn-out of up to $38 million, the German retailing firm announced on Thursday last week.

A shopper chooses chicken at a Metro store in Ho Chi Minh City on July 29, 2015. Tuoi Tre

Metro is slated to transfer its complete wholesale business in Viet Nam to Thailand's Berli Jucker Public Company Limited (BJC), according to an agreement they closed in August 2014.

The acquisition of the CFF is thus seen as a move for the German firm to remain in Viet Nam with a different business, food service distribution, rather than cash and carry.

The CFF's business comprises sourcing and procurement, import and export, storage and handling, marketing and distribution of high-end fine food products such as dairy, meat, pastry, seafood, high quality perishables, condiments, pasta and dry products, according to Metro.

The company’s customers are five-star hotels, high-end restaurants, airlines, supermarket chains and delicatessen stores, with annual sales of more than $200 million.

(Source: tuoitrenews)