SET-listed RS announced yesterday the acquisition of the entire business of Unilever Life (ULife), a direct sales business unit of the global consumer product conglomerate Unilever, with an investment of roughly 880 million baht.
This move will strengthen RS Group in terms of products, distribution channels, new business models for the commerce business group, and create synergy among its affiliates, said chief executive Surachai Chetchotisak.
ULife has specialised in the direct selling business for a long time, and once merged into RS Group's Entertainmerce model will be unleashed its potential to become a modernised direct sales business with exponential growth to be one of the top five in the country within three years, he said.
"Mergers and acquisitions [M&A] are a key strategy for RS Group to take over companies with considerable potential for growth," said Mr Surachai.
"The decision to fully acquire ULife, which helps Thais become entrepreneurs through a trusted platform, will strengthen the commerce business of RS Group and allow the company to reach wider target groups through new distribution channels," he said.
"This transaction increases business opportunities and creates added value for the group, while highlighting its mission to fill people's lives with quality products and services and inspire Thais to be passionate about having stable jobs and income.
"Direct sales is a business that RS Group is keenly interested in, as the overall growth of the industry is expected to reach a minimum of 6-7% a year, meaning ULife has tremendous potential to grow," he said.
Given the "entertain-merce" model of RS Group and its affiliates, ULife can maximise its efficiency and distinguish itself in marketing and product distribution, leading to new sales growth opportunities and strengthening business partnerships, he said.
This move attracts new prospects and adds variety to product lines for stronger growth potential.
More importantly, ULife can use RS Group's Popcoin, a smart marketing platform, to create added value for the business in all dimensions such as helping to enhance and increase marketing efficiency to meet consumers' needs and thus to build engagement and drive sales.
Mr Surachai said earlier RS plans to allocate 1-2 billion baht for new M&A deals this year to create opportunities for growth and expand the ecosystem for the group.