AgriNurture Buys World's Largest DC Plant

AgriNurture Inc., an agro-commercial company and exporter, is taking control and management of Peter Paul Philippines Corp., the world’s biggest producer of desiccated coconut.
“Talks are under way for the buyout, if I may call it a buyout. The owners have already agreed in principle to relinquish 51 percent of the company to ANI. We certainly hope to forge a deal before the third quarter is over,” said Antonio Tiu, president of AgriNurture. He said the company had the option to acquire the rest of Peter Paul’s shares later once the purchase for the 51 percent stake is finalized. “Right now, we’re finalizing the acquisition. We just have to push for our planned IPO so we can secure the deal,” Mr Tiu said.

AgruNurture plans to raise P1.2 billion from the equities market. The company earlier projected about P800 million to P1 billion in proceeds from the IPO. “But as we got hold of the audited financial statement, as we talked to financial investors and as we went on with the validation on projections, we’re looking at P1 to P1.2 billion,” said Janssen Ceo, product manager and spokesman for the company. AgriNurture plans to offer 70 percent of the IPO shares to local investors and the rest to foreign investors. It is initially looking at price of about P25 to P30 per share. The company said it would list its shares in the local bourse despite volatile conditions to raise funds for the expansion of its farming division and pursue plans for more brand acquisitions.

The acquisition price of Peter Paul was not disclosed.

Peter Paul’s plant, a 13-hectare facility in Barrio Pahinga, Candelaria, Quezon, is capable of producing 22,000 metric tons per year of desiccated coconut for domestic consumption and export to countries like the US and China. Once a wholly-owned subsidiary of US-based chocolate confectionary Peter Paul Candy Manufacturing, Peter Paul Philippines, now locally-owned, has expanded its operations to include buko water extraction, coco milk and coco cream manufacture, virgin coconut oil, coconut flour and fibre, copra, copra cake, coconut oil, paring cake, paring oil and other residual products.

AgriNurture supplies 70 percent of SM Supermarket and SM Hypermarts’ fresh fruits and vegetable requirement under the SM Bonus brand, through contract growing arrangements and from its own output.

Source: Manila Standard