Bolt-on acquisition: Po bros seal purchase of ‘Ligo’ brand for less than P1.7B cash
Business

Bolt-on acquisition: Po bros seal purchase of ‘Ligo’ brand for less than P1.7B cash

The country’s biggest canned food maker, Century Pacific Food (CNPF), has finalized its takeover of the ‘Ligo’ sardines brand from the Tung family.

CNPF, led by the sons of the late ultra bilyonaryo Ricardo Po, has acquired trademarks and other intellectual property of ‘Ligo’, including formulation and know-how, on 29 April 2022 or four months after disclosing the deal.

“The acquisition will effectively increase revenues and earnings of CNPF. ‘Ligo’ is a leading brand in the sardine category. It will be highly synergistic with the rest of CNPF’s shelf stable marine products,” said CNPF.

“This will be an accretive, bolt-on acquisition. CNPF foresees synergies in selling and distribution, supply chain, and marketing.

CNPF has a long-standing business in the sardine category. The company will be leveraging its scale and capability to create more value for the brand, which will in turn strengthen its core business,” it added.

CNPF’s sardine brand, 555, lags behind market leader Mega sardines of bilyonaryo William Tiu Lim.

CNPF said it would pay less than five percent of its total assets as of 31 December 2021 (P33.89 billion) to Catherin Tung Li and Xtreme Investments Enterprises Ltd.

CNPF, which will use its internal cashflow to pay for its new brand, said the purchase was still subject to the acquisition of Ligo’s inventory and fixed assets and submission of certificates of registration.

 

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