Philippines-based food and beverage kiosk operator Fruitas Holdings Inc announced its acquisition of two food firms in the country after raising roughly 1 billion pesos ($20 million) in its initial offering in November.
The firm has set aside an allocation of $2.6 million for the acquisition of food firms this year.
In a disclosure to the Philippine Stock Exchange Monday, Fruitas said it has acquired 100 per cent of the outstanding shares of SoyKingdom Inc, a privately-held corporation that specialises in soybean-related products under the The Tofu Store brand.
Fruitas said The Tofu Store has been serving customers since 2006 and has gained a loyal following among its patrons, including restaurants. The storefronts of The Tofu Store, located in Little Baguio, San Juan, and Sta. Mesa Heights in Quezon City, will continue to operate.
Financial details of the acquisition were not fully disclosed although Fruitas said the consideration, paid through cash, is below 10 per cent of its total assets and book value as of September 30, 2019.
Additionally, Fruitas also announced that its subsidiary, Negril Trading Inc, operator of De Original Jamaican Pattie Shop and Juice Bar, has acquired the assets of Kuxina, a stall concept specialising in serving Filipino dishes, for an undisclosed amount.
Negril Trading will take over the operations of two owned stores of Kuxina, operating under the Kuxina Filipino Fusion and Kuxina Ihaw Na! brands and continue the franchise arrangements with eight other stores.
“We will further strengthen our existing brands and seamlessly integrate our latest acquisitions, broadening our offerings to include both traditional and contemporary Filipino food and drinks,” Fruitas President and Chief Executive Officer Lester Yu said.
In December, Fruitas announced the allocation of about 150 million pesos ($2.6 million) from its IPO proceeds to acquire food firms in 2020. The company also announced that it seeks full utilisation of the acquisition budget as early as 2020 and could augment the amount using internally generated cash and other funding sources.
“The number of acquisition targets being evaluated by the group has increased since the completion of our IPO,” the company said, adding that the acquisitions can come in the form of acquisition of shares or assets of the targets.
Founded in 2002, Fruitas has over 900 stores across the country and over 20 brands in its portfolio, including household names such as Fruitas Fresh From Babot’s Farm, Buko Loco, Juice Avenue, Buko Ni Fruitas, Johnn Lemon and Black Pearl, and food parks such as Uno Cinquenta in Maginhawa and Le Village The Lifestyle Park in E. Rodriguez Sr., both situated in Quezon City.