Leading Philippine canned food producer Century Pacific Food Inc. is expanding its export business with a deal to acquire a group of distribution companies in China.
Century Pacific, which trades on the Philippine Stock Exchange under the ticker CNPF, announced Friday an intention to sign an equity purchase agreement for a 100 percent interest in the group of entities that currently distribute Century Tuna in China for $2.56 million.
Previously, these China companies were each 50-percent owned by Thai Union Manufacturing Co Ltd., a wholly owned subsidiary of Thai-listed Thai Union Frozen, and Century Pacific Group Inc., the parent company of CNPF.
“Since Century Tuna’s entry into China during the early 1990s, it has grown its presence to become the country’s number one canned tuna brand,” CNPF said in a disclosure to the PSE.
The $2.56 million total consideration for 100 percent of the companies was based on their net asset values, the disclosure said. Funding for the transaction will be in cash.
The acquisition is seen to support the expansion of CNPF’s international branded segment, currently still a small part of its business.
“We are excited about this newest addition to our export presence. China could be a future growth market for us with its total canned food market estimated to be increasing double-digits yearly,” said Gregory Banzon, CNPF vice president and general manager.
CNPF also acquired earlier the license for the Kamayan trademark in North America, one of the top names in the US market for shrimp paste—a popular condiment in Philippine cuisine.
“We look forward to growing our product portfolio and expanding the distribution network in China,” said Banzon.
“We are currently studying opportunities to enter adjacent categories to take advantage of this new market.”
In over three decades, CNPF has developed several household names that include Century Tuna, Argentina Corned Beef, 555 Sardines, Angel Milk and Birch Tree Powder Milk. The company is also the Philippines’ leading exporter of private label tuna and coconut products.