Franklin Baker beefs up MPIC coconut business
MANILA, Philippines — Metro Pacific Investments Corp. (MPIC) now dominates the country’s food-grade coconut exports with a market share of about 70 percent after taking the reins of Franklin Baker Group of Companies.
The Pangilinan-led group on Wednesday said in a statement it had completed its acquisition of Franklin Baker, one of the leading coconut processors in the Philippine market.
This came just less than five months after the group’s agri-food unit Metro Pacific Agro Ventures Inc. (MPAV) entered into a pact to buy Franklin Baker.
READ: Metro Pacific completes acquisition of Franklin Baker
MPIC said the move injects Franklin Baker with “immediate capital and strategic support to clear pending export backlogs and stabilize the operations …”
With the conglomerate backing Franklin Baker, the latter is given a boost to “transition confidently toward a clear growth trajectory.”
MPIC did not disclose the transaction value.
“In our drive to build a stronger agricultural sector, this acquisition supports key industries such as coconut processing,” said Manuel V. Pangilinan, chair and CEO of MPIC.
“By bringing Franklin Baker into our portfolio, we are strengthening an important segment of the supply chain and helping ensure that thousands of Filipino farmers and communities benefit from a more efficient and stable industry,” Pangilinan said.
Global stage
Jovy Hernandez, president and CEO of MPAV, said the acquisition would also provide momentum to its goal of making the local coconut sector competitive on the global stage.
READ: MPIC nears P1-B Franklin Baker buyout
MPIC also has investments in power, toll roads, water, transportation, health care and real estate.
The group’s consolidated core net income in the first nine months of the year jumped 14 percent year-on-year to P23.6 billion from P20.8 billion.
Its reported net income, however, fell 7 percent due to the absence of a one-time gain booked a year ago.
READ: MPIC delivers P 23.6-B core earnings
The group said its power business still provided the biggest contribution at P17.6 billion, or 65 percent of the net operating income. Water and toll roads pitched in P5.8 billion and P4.4 billion, respectively. INQ
