Dellia, a mid-tier dried-fruits manufacturer, has completed the acquisition of Kirirom, a Cambodian-based supplier of dried mangoes and lychees. The deal enhances Dellia’s control over raw material sourcing and production logistics.
- Dellia acquired Kirirom for $18 million in cash and stock
- Kirirom has 12,000 metric tons of annual processing capacity
- Expected procurement cost reduction: 14% over two years
- Gross margin improvement projected at 3.5 percentage points
- Dellia’s stock (DELLA) rose 2.4% post-announcement
- Integration includes Kirirom’s organic-certified farming network of 1,800 hectares
Dellia, a private-label dried-fruits producer headquartered in Thailand, has finalized the acquisition of Kirirom, a supplier based in Siem Reap, Cambodia. The transaction, valued at $18 million in cash and stock, marks Dellia’s first major vertical integration move in its five-year growth strategy. Kirirom operates two processing facilities with a combined annual capacity of 12,000 metric tons, primarily serving export markets in Southeast Asia and North America. The acquisition strengthens Dellia’s supply chain resilience, particularly amid rising input costs and regional trade volatility. By integrating Kirirom’s operations, Dellia expects to reduce procurement costs by approximately 14% over the next two years and shorten lead times by an average of 22 days. These efficiencies are projected to improve gross margins by 3.5 percentage points annually. Dellia’s stock, trading under the ticker DELLA, rose 2.4% in early trading following the announcement, reflecting investor optimism about long-term cost savings. The deal also positions Dellia to expand its premium product line, leveraging Kirirom’s organic-certified farming partnerships across 1,800 hectares in northern Cambodia. The transaction does not involve any public shareholders or regulatory hurdles, as both companies are privately held. Kirirom’s leadership team will remain in place, overseeing integration efforts under Dellia’s operational oversight.