Listed retailer Puregold Price Club Inc. (PGOLD) is acquiring 14 branches of DiviMart Supermarkets to further expand its reach in Luzon.
In a disclosure to the Philippine Stock Exchange, the firm said has entered into an agreement with the owners of DiviMart, Harry Uy and Vivian Ong Juanitas, to acquire the supermarkets including leasehold improvements, furniture, fixtures, equipment, and merchandise inventory.
“The agreement will allow PGOLD access to all Divimart supermarket locations which may instantly be converted to Puregold stores under a sublease transaction. The acquisition will further expand the reach of PGOLD to a broader market,” Puregold said.
These 14 stores are located in Angat, Bulacan; Mapulang Lupa, Pandi, Bulacan; Morong, Bataan; Cabanatuan City, Nueva Ecija; Olongapo City; San Isidro, Taytay, Rizal; San Miguel, Pasig City; Manggahan, General Trias, Cavite; Mambog, Bacoor, Cavite; Pulo, Cabuyao, Laguna; Tayuman, Manila; Aliaga, Nueva Ecija; San Juan, Taytay, Rizal; and Pulilan, Bulacan.
Puregold said an additional 18 Divimart locations will be evaluated for possible conversion to Puregold stores.
DiviMart is a Filipino supermarket chain founded in 1989 by Uy and Juanitas. The company has more than 30 branches nationwide and is known for its low prices and wide selection of goods.
DiviMart offers a variety of products, including fresh produce, meat, seafood, dairy, baked goods, frozen foods, snacks, beverages, household goods, and personal care items.
“PGOLD and Divimart share humble beginnings and the vision to bring customers convenience and the best value by offering quality and affordable products,” said Puregold.
It noted that, “The consideration for the acquisition is below 10 percent of the Corporation’s book value. The parties are still finalizing the definite consideration for the contemplated transaction because the evaluation of store locations, improvements, furniture, fixtures, equipment, and merchandise inventory is still ongoing.”