Vitarich Corp., a major poultry and feeds producer, announced Tuesday it will acquire Broilers Club, Inc. (BCI) and its breeder farm assets for up to P280 million.
The company’s board approved a memorandum of agreement (MOA) to purchase all or a portion of BCI’s breeder farm facilities in Davao del Sur, including land, equipment, and improvements. The deal also includes acquiring 125,000 common shares and shareholder advances in BCI.
Vitarich said the transaction is expected to strengthen its breeder operations and could increase breeder output by as much as 8 percent.
BCI is a domestic private corporation that specializes in poultry and egg production.
The acquisition is contingent on due diligence, which will begin after the MOA is signed and must be completed within 90 days of receiving all requested documents from BCI.
“At present, the transaction is not seen to have any adverse effects on VITA’s operations,” the company said in a statement. “Rather, the transaction is a strategic step to the current breeder farm operations of VITA.”
Once the deal is finalized, BCI will become a subsidiary of Vitarich, and the acquired facilities will be used as a breeder farm.
Owned by the Sarmiento family, Vitarich is a leading poultry integrator and manufacturer of animal feeds and food products in the Philippines. The company operates in three main segments: feeds, foods, and farms.
Vitarich reported a record-high net income of P235 million in the first half of the year, a 40.7 percent increase from the same period last year. Revenues saw a modest 1 percent year-on-year increase, with growth limited by lower sales volumes due to a shortage of day-old chicks in the poultry industry.
