By Leslie D. Venzon
MANILA, Oct. 27 (PNA) — Leading food manufacturer Century Pacific Food, Inc. (CNPF) has fully acquired an integrated coconut producer for both export and domestic markets for Php4.5 billion, in a bid to cement itself as a leading player in growing food markets.
In a disclosure to the Philippine Stock Exchange, CNPF said it bought Century Pacific Agricultural Ventures, Inc. (CPAVI), an integrated coconut producer of high value organic certified and conventional coconut products.
“The global trend towards healthy and organic coconut products is growing rapidly in developed economies like the US (United States) and Europe. This is an area where Philippine industry has an advantage and can be globally competitive” said CNPF’s President Christopher Po.
Po believed that the new business will be a great addition to CNPF’s portfolio and “another leg to sustain and drive the company’s future growth.”
“The acquisition is estimated to be seven to eight percent 2016 earnings accretive and will improve the consolidated company’s net profit margins,” the company said.
Funding for the transaction will be 50 percent cash and 50 percent new shares.
CNPF will issue 128.2 million primary shares at a price of Php17.55 each.
The balance of Php2.25 billion will be sourced from existing cash and bank borrowings.
After the acquisition, parent firm Century Pacific Group, Inc. (CPGI) increased its stake of CNPF to 73.7 percent from previous 72.2 percent.
CPAVI was previously a wholly owned subsidiary of CPGI.
Century Pacific Food is behind popular canned food brands Century Tuna, Argentina Corned Beef, 555 Sardines, Angel, and Birch Tree which have established market leading positions locally.
It also provides private label tuna products for export overseas. (PNA)