After defying the earnings downturn caused by the COVID-19 pandemic last year, leading canned food manufacturer Century Pacific Food Inc. (CNPF) seeks to sustain its growth momentum this year by venturing into the refrigerated food business.
CNPF has acquired Pacific Meat Co. Inc. (PMCI), an emerging player in the large refrigerated food category, from its parent firm for P650 million. This unit has its own manufacturing facilities, cold chain distribution and a robust pipeline of refrigerated products from which CNPF expects to derive growth opportunities.
The total consideration of P650 million for the takeover, which will start on April 1, is less than PMCI’s book value, significantly lower than its 2020 annual sales and its discounted cashflow value as analyzed by a major Philippine investment bank, CNPF told the Philippine Stock Exchange on Wednesday.
“We are looking at refrigerated food as another platform for growth and look forward to bringing in PMCI as it has now hit scale and built out a pipeline of new products that will supplement CNPF’s,” CNPF executive chair Christopher Po said.
All consumer good businesses of the Po family will be consolidated into the listed CNPF.