Dean & DeLuca Being Bought by Thailand-Based Developer

Pace Development Corp., a Thailand developer of super-premium mixed-use projects, is acquiring Dean & DeLuca, one of the world's most iconic gourmet food brands, for $140 million, according to Bangkok-based The Nation.

The move is expected not only to boost Pace's capabilities as a luxury developer but also to fuel rapid growth of Dean & DeLuca's global gourmet food-and-beverage retailing business.

Along with the brand, the purchase includes the supply chain and operations of 11 outlets and two commissaries in the United States and licensing agreements in 31 international locations. 

Besides four outlets in Thailand, there are international branches in Japan, Singapore, South Korea, Kuwait, Qatar and the United Arab Emirates.

Sorapoj Techakraisri, chief executive officer of Pace, told The Nation the company aimed to capitalize on the global convergence of super-premium mixed-use property development and "lifestyle brands."

"People want a total delivered environment where they feel good about living. It's why we must be able to bring into our properties some of the world's best lifestyle brands. It's a proven model already being successfully deployed by thought-leaders in [residential] and retail property development," he said.

The Dean & DeLuca brand also has "extraordinary potential for rapid growth globally," he told The Nation.

"We expect to have stores numbering in the hundreds within only two years, up from the current 42 stores, and to increase our global footprint from eight countries at present to more than 15 countries in the same time, primarily through licensing and the company's own-store investment," he said. Dean & DeLuca is one of the world's great brands, while the business has a well-established track record of almost 40 years, he said. 

The funding for the acquisition is from internal cash flow and a loan from Siam Commercial Bank, he said.