Thai carpet firm inks M&A deal with UK furniture company

TCMC is confident that it will grow strongly in coming years through its merger-and-acquisition (M&A) strategy, under which it has taken over three companies during the past three years. 
This year’s revenue is expected to double.
TCMC chairman Pimol Srivikorn said yesterday after signing the latest M&A agreement that the company’s Bt1.6-billion investment would make TCMC the major shareholder in DMM, with a 75-per-cent stakes. Two British partners, David Lee and Mark Smith, will hold 12.5 per cent each.
Shareholders approved the transaction at a meeting yesterday.
After the merger, TCMC will start recognising revenue from DMM in the current quarter. 
This year, the company expects revenue of Bt3.3 billion, double last year’s figure. Next year, it expects revenue to double again, as DMM’s annual income is more than 70 million pounds (Bt3 billion), Pimol said.
Last year, TCMC acquired a stake in another British furniture company, Alstons, whose annual revenue is 30 million pounds (Bt1.5 billion). Another M&A deal last year was with TCH Suminoe, a manufacturer of fabrics and carpeting for the automotive industry in Thailand and globally. 
In 2013, before adopting the M&A policy, TCMC posted revenue of about Bt700 million. 
After the merger with DMM, TCMC will support the British company’s marketing in the Asia-Pacific region, especially China, as well as supplying raw materials. 
David Lee, chief executive officer and co-founder of DM Midlands, said the two companies would tighten cooperation to ensure sustainable and significantly growth.
He said his company expected to continue to flourish despite the impacts of the United Kingdom leaving the United Kingdom. The merger with TCMC should help DMM increase its exports from the current 3 per cent of total sales.