Philippines canned food company Century Pacific Food (CNPF) will acquire 100% stake in a group of unnamed Chinese distribution companies for a total price of $2.56m to further expand its branded exports business.
In this regard, CNPF is all set to enter into an all cash equity purchase deal with the group of entities which are into distribution of Century Tuna in China.
The acquisition is likely to boost CNPF’s expansion of its global branded segment, which is said to be only a small part of its business as of now.
CNPF vice president and general manager Gregory Banzon said: “China could be a future growth market for us with its total canned food market estimated to be increasing double-digits annually.”
“We look forward to growing our product portfolio and expanding the distribution network in China.
Banzon further said that CNPF is currently exploring opportunities to foray into adjacent categories to leverage the new market.
The canned food company had recently purchased license for the Kamayan trademark, in North America. Said to be a well known name in the American market for shrimp paste, Kamayan is a widely used condiment in Philippine cuisine.
CNPF had acquired the trademark of the shrimp paste brand through its subsidiary Century Pacific Seacrest. Its acquisition in this deal also included the brand’s license for Canada.
The unnamed Chinese companies that are being acquired by CNPF were previously owned 50% each by Thai Union Manufacturing alongside and Century Pacific Group, CNPF’s parent company.
CNPF’s other notable acquisition in recent times is that of coconut producer Century Pacific Agricultural Ventures for PHP4.5bn ($90m) in October 2015.
