SMC unit completes buyout of biscuits firm.
SAN MIGUEL Pure Foods Co. Inc. (Purefoods) said yesterday that it completed the acquisition of La Pacita, which makes biscuits and flourbased snacks, from owner Felicisimo Martinez and Co. Inc.
The San Miguel Corp. subsidiary said in a stock exchange filing that the transaction was completed on Feb. 1 and included all trademarks, formulations, recipes and "intangible properties."
The deal was first announced following the signing of a socalled intellectual Property Rights Transfer Agreement with Felicisimo Martinez and Co. last Nov. 19, 2014. La Pacita, which has been in business for almost a century, is best known for its Supreme Flakes as well as butter and raisin cookies.
The transaction likewise highlighted the company's intent to expand in the Philippines, apart from eyeing new markets in the region. Purefoods said in a stock exchange filing this year that it was considering the expansion of product lines as well as potential acquisitions in Vietnam, Malaysia and Thailand.
The company announced last year that profit in the nine months through September 2014 hit P2.7 billion, flat from the same period in 2013, as strong storms dented earnings.
Revenue was up 4 percent yearonyear to P74.4 billion in the ninemonth period and was on track to breach P100 billion for the full year, Purefoods said in a statement.
Growth in revenue was driven primarily by its agro, milling and dairy businesses.
Purefoods noted that operating income grew by 18 percent yearonyear to P4.3 billion as favorable selling prices, lower wheat costs and improved availability of key raw materials resulted in better margins, tempering the adverse impact of the Manila port congestion and Typhoon "Glenda" on operations.
The agro and milling businessesproducer of BMEG Feeds, Magnolia chicken, Monterey meats and Baron and King flourdelivered a combined revenue growth of 7 percent on account of higher volumes and better selling prices.
Purefoods' cashflow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) amounted to P6.2 billion for the ninemonth period.