Fruitas Holdings Inc., a leading operator of multi-format food and beverage stores, is entering the roasted chicken segment with the acquisition of a controlling 60 percent stake in Mang Bok’s.
In a disclosure to the Philippine Stock Exchange (PSE), Fruitas said this will be implemented through an investment by its wholly-owned subsidiary Negril Trading Inc. in a company which will acquire the assets related to the Mang Bok’s business.
On Nov. 19, 2024, Negril Trading became a 60 percent shareholder of Bigboks Enterprises Inc., which served as the acquisition vehicle for the assets related to the Mang Bok’s business.
Negril Trading will subscribe to 960,000 shares of Bigboks at P9.23 per share (par value of P1 per share) or P8.6 million and pay its subscription in cash, initially paying for 25 percent of the agreed subscription price, said Fruitas Chief Finance Officer Rushell A. Salvador.
He said most of the proceeds will be used to acquire the assets and intellectual property related to the Mang Bok's business. The subsequent tranches of subscription proceeds are expected to be used towards the initial expansion phase of Mang Bok's which currently has one company-owned store and three franchised stores.
Mang Bok’s is a well-loved brand that has been catering to Filipinos since September 2002 by offering good-tasting, value-for-money and quality food.
Its stores offer freshly roasted chicken and pork products with a selection of fried items and affordable rice meals to serve a wide range of customers.
The transaction is expected to create synergies across Fruitas brands, enhancing overall customer experience and satisfaction.
The group also aims to leverage its extensive retail network and operational expertise to elevate the brand while maintaining the quality and taste of Mang Bok’s that the Filipino consumers have come to love.
The acquisition includes all assets, including inventories, equipment, leasehold improvement, transportation equipment, if any, intellectual property rights/trademark, franchise ownership grant/rights, contractual rights to suppliers and lessor including security deposits at the time of acquisition.
“Our family continues to grow larger and more fruitful. Bringing Mang Bok’s into the diverse portfolio of House of Fruitas is an exciting opportunity for us,” said Fruitas President and CEO Lester C. Yu.
He added that “this acquisition perfectly aligns with our commitment to excellence and our customer-centricity approach. We are dedicated to providing delicious and accessible food options that truly resonate with the heart of Filipino culture.”
Fruitas Holdings delivered a 35 percent growth in consolidated net income to P95 million for the first nine months of 2024 from P70 million in the same period last year.
The firm achieved a record-breaking P2.12 billion in sales for the first nine months of 2024, representing a 19 percent increase from P1.79 billion in the same period in 2023.
Fruitas has solidified its position as a key player in the food and beverage industry through its diversified, multi-format store network operating across the Philippines.
As of Sept. 30, 2024, the company reported a total of 851 stores nationwide. This includes 732 kiosks/carts/in- line stores, 105 community stores, and 14 cloud kitchens and restaurants, highlighting the company's broad reach and adaptability to various market segments.
Fruitas' same-store sales growth (SSSG) improved by 10.7 percent year-over-year (YoY), driven primarily by its Fruitas brand, which includes a popular range of fruit-based juices, shakes, and other offerings.
In addition, Ling Nam, the company’s flagship brand in the dining sector, and Balai Pandesal, a leading brand in the pastry segment, were pivotal in driving the strong revenue performance.
Notably, Ling Nam Food Inc. (LFI), a subsidiary of Fruitas, experienced remarkable expansion, increasing its number of locations by 114 percent, to 45 current locations from 21 in the same period of 2023.
“Our performance over the past nine months has been outstanding, both in terms of revenue growth and operational efficiency. This success is a direct result of our unwavering commitment to enhancing our product offerings and delivering the highest-quality world-class ‘Made by Filipinos’ products to our valued consumers,” said Yu.
He noted that “as we enter the final quarter of 2024, the Fruitas team is excited to further expand our presence nationwide, making our wide range of Fruitas products even more accessible to our customers.”