ALLIANCE Select Foods International, Inc. is selling its businesses in the United States and Indonesia to focus on the Philippines and New Zealand.
In a disclosure to the stock exchange Thursday, the seafood company said it is selling its 100% equity in US subsidiary Spence & Co. Ltd. and the land and building assets of its subsidiary PT International Alliance Food Indonesia.
Massachusetts-based Spence & Co. will be sold to Acme Smoked Fish of Massachusetts LLC, while the assets in Indonesia will be acquired by PT Multi Nabati Sulawesi, a subsidiary of Wilmar International Ltd.
“Ninety percent of our business is in the Philippines and New Zealand. Growing our operations and maintaining our profitability in these countries is our priority in the medium term,” Alliance Select President and Chief Executive Officer Raymond K.H. See said in the statement.
“To ensure the sustainability of our results, we must consolidate our gains and make decisions that are consistent with our objectives,” he added.
Proceeds from the divestment will be used for capital expenditures and debt reduction.
“Alliance Select is a stronger company today and the goal is to continue this positive momentum. We have a healthier balance sheet and are ready to further invest in our future,” Mr. See said.
In the first half of the year, the attributable profit of Alliance Select plummeted 99.7% to $7,269, as net sales declined 10% to $43.094 million. The General Santos City-based firm’s profits and sales were affected by the lower market price of raw fish and manpower issues. — Denise A. Valdez