I-FERN invests in Fruitas
Businessman Lester Yu’s food kiosk group Fruitas Holdings won over a new investor via the entry of direct selling company I-FERN Corp. of Tommanny Tan.
I-FERN acquired 100 million Fruitas shares valued at P122.5 million from Yu’s Lush Properties Inc. via a block sale transaction executed on Dec. 20 this year.
The shares were priced at P1.225 each, a 9 percent premium over its share price on Tuesday.
“The investment of I-FERN is a testament of Fruitas Holdings’ strong performance and viable growth potential. We are grateful to Mr. Tan for the trust he has extended to us. We look forward to potential opportunities to cooperate as we serve healthy and affordable products to Filipinos,” Yu said in a statement.
Lush Properties intends to use proceeds to partially finance the acquisition of businesses in the “healthcare and self-care industries” while accelerating the expansion of its existing property portfolio.
I-FERN makes a range of healthcare products like FERN-D, FERN-ACTIV, and MilkCa. It was best known for making FERN-C before selling the brand to STADA, an international pharmaceutical company.
Its supplement products are distributed through its network of 300,000 direct sellers, according to Fruitas.
“This investment is expected to expand the reach of I-FERN and [Fruitas] as both parties have a symbiotic relationship by producing and distributing healthy products to its consumers,” Fruitas said in the statement.
“A combination of the marketing expertise, broad distribution channels, and experienced manpower of both parties are expected to boost their respective revenues,” it added.
Tan, who is I-FERN’s president and CEO, said the deal will help them diversify revenues and expand distribution lines.
“We look forward and expect a bright future together”, Tan said.
Fruitas earlier reported a resurgence in business following the winding own of pandemic restrictions.
Its nine-month net income hit P43 million, reversing losses of P16 million in the same period last year.
Revenues were also up nearly 63 percent to P1.26 billion while margins were kept stable despite the high inflation environment.
