Century Pacific Food Inc (CNPF), the Philippines’ largest canned food company, is set to further expand its branded exports business via the acquisition of distribution companies in China.
CNPF will sign an equity purchase agreement for a 100% interest in the group of entities which currently distribute Century Tuna in China.
Since Century Tuna’s entry into China during the early 1990s, it has grown its presence to become the country’s number one canned tuna brand.
Total consideration for 100% of the companies is USD2.56 million, which approximate their net asset values. Funding for the transaction will be in cash.
The acquisition is expected to support the expansion of CNPF’s international branded segment, currently still a small part of its business.
Gregory Banzon, Vice President and General Manager, said, “We are excited about this newest addition to our export presence. China could be a future growth market for us with its total canned food market estimated to be increasing double-digits annually.”
Recently, CNPF also acquired the license for the Kamayan trademark in North America, one of the top names in the U.S. market for shrimp paste – a popular condiment in Philippine cuisine.
“We look forward to growing our product portfolio and expanding the distribution network in China,” said Banzon.
He added, “We are currently studying opportunities to enter adjacent categories to take advantage of this new market.”
Previously, the China companies were owned 50% each by Thai Union Manufacturing Co Ltd, a wholly owned subsidiary of Thai-listed Thai Union Frozen, and Century Pacific Group, Inc., parent company of CNPF.
