LISTED Balai ni Fruitas, Inc. said it has completed the acquisition of the Sugarhouse brand from Golden Spatula Corp., marking the company’s entry into the cake business.
“On May 7, Balai completed the acquisition of the Sugarhouse business after execution of deeds of absolute sale of assets (deed of sale of assets, deed of sale of motor vehicle, deed of assignment of trademark registration) and fulfillment of agreed closing conditions,” the listed company said in a stock exchange disclosure on Tuesday.
The transaction represents less than 10% of the company’s total assets and book value as of Dec. 31 last year and will be paid in cash from its initial public offering (IPO) proceeds, the company said.
The acquisition will allow Balai to expand its product offerings in the cake category and tap a wider customer base, it noted.
The deal includes the transfer of registered intellectual property, manuals, recipes, and technical know-how, Sugarhouse delivery, commissary and store equipment. Balai will also take over the catering business of Sugarhouse.
“Balai will also gain additional production capacity to fuel its growth. Balai also anticipates significant synergies with its existing brands,” the company said.
Sugarhouse started in 1983. It offers baked goods such as chocolate truffle and French apple pie. The brand has since expanded its menu to include breads, pastries, and meals.
Balai is a 75%-owned subsidiary of Fruitas Holdings, Inc. The company has three brands in its portfolio consisting of Balai Pandesal, Buko ni Fruitas, and Fruitas House of Desserts. Balai ni Fruitas currently has more than 100 active stores across the three brands.
The company recorded a 58% jump in its net income to P59 million last year as revenues increased by 57% to P535 million.
On Tuesday, Balai shares dropped by 3.3% or P0.015 to 44 centavos apiece. — Revin Mikhael D. Ochave
