Aboitiz Equity Ventures Inc. said its food unit acquired a 75-percent interest in Gold Coin Management Holdings Ltd., Asia’s largest privately-owned agribusiness company, for $334 million.
The acquisition will enable Aboitiz Equity to significantly expand its animal feeds business in the Asia-Pacific region.
Aboitiz Equity said in a disclosure to the stock exchange wholly-owned subsidiary Pilmico International signed an agreement with British Virgin Islands-based Golden Springs Group Ltd. to acquire a 75-percent equity interest in Gold Coin.
Aboitiz Equity said it would fund the transaction through financing from foreign banks.
“Asean’s market size of over 500 million will bring many opportunities to expand our customer base. This acquisition serves as a platform towards achieving Pilmico’s strategy to grow our core feed milling business beyond Asean and now across Asia,” Aboitiz Equity chief operating officer and Pilmico president Sabin Aboitiz said.
“This acquisition will add three million metric tons of volume which quadruples our overall feeds production capacity,” he added.
Singapore-based Gold Coin is a major producer of animal feeds and operates 20 production facilities, employing over 3,000 people across 11 countries in Asia.
The Gold Coin acquisition is Pilmico International’s largest investment in the Asia-Pacific region to date.
Pilmico managed to close the deal after it was chosen as the preferred bidder following a competitive bid selection process for the acquisition of Gold Coin shares from GSG.
“The Zuellig and Aboitiz families have known each other for generations. I am excited about the partnership with Aboitiz Group, one of the largest and most established conglomerates in the region. The partnership will strengthen Gold Coin’s growth profile and long-term value creation potential”, said Peter Zuellig, chairman of GSG.
Pilmico first ventured outside the Philippines in 2014 when it acquired 70 percent of Vinh Hoan Feeds, one of Vietnam’s major aqua feed manufacturer.
Then in 2017, it bought an additional 15 percent stake in VHF, boosting its stake to 85 percent. It also purchased 70 percent in Europe Nutrition Joint Stock Company (Eurofeed), an animal feeds manufacturer.
Gold Coin offers a wide range of products for both the livestock and the aqua industries, including young animals and hatchery feed, premixes, concentrates and compound feed.
Gold Coin in 2017 generated net revenues of S$751million.