CENTURY Pacific Food, Inc. (CNPF) said on Wednesday that it had acquired the Ligo manufacturing facility in Zamboanga to finalize its purchase of the Tung-owned canned sardine brand.
“This will be an accretive, bolt on acquisition. CNPF foresees synergies in selling and distribution, supply chain, and marketing. Moreover, this acquisition is aligned with the company’s mission to provide affordable nutrition to its consumers,” the firm said in a disclosure.
The acquired assets include building facilities and equipment used in making Ligo products in Zamboanga. They were acquired from Dragon Land Holdings Corp. and A. Tung Chingco Manufacturing Corp.
“The acquisition will effectively increase revenues and earnings of CNPF,” the company said.
In December, CNPF announced its plan to buy the assets and intellectual property of the Ligo brand.
“Ligo will be highly synergistic with the rest of CNPF’s shelf stable marine products. CNPF has a long-standing business in the sardine category,” it said.
The company added it will be leveraging its “scale and capability to create more value for the brand, which will in turn strengthen its core business.”
The parties executed deeds of absolute sale of the building and equipment on June 1. The acquisition of the manufacturing facility and equipment will enable CNPF to produce Ligo canned sardines in Zamboanga.
In 2021, the company’s unaudited net income increased by 20% to P4.7 billion.
CNPF shares dropped by 1.36% or 30 centavos to P21.70 on Wednesday. — Luisa Maria Jacinta C. Jocson