Metro Pacific Investments Corp. (MPIC) is sinking P198 million into a joint venture with dairy company Carmen’s Best Group owned by the family of former senator Ramon Magsaysay Jr., the latest in the Pangilinan-led group’s venture into the commodities sector.
The conglomerate, more known for infrastructure businesses like telecommunication, water, and toll road, will get 51 percent of the joint-venture which the company will infuse through an all-cash infusion while the Magsaysay family will contribute the Carmen’s Best assets.
Under the partnership, the Carmen’s Best Group will consolidate its assets and operations – Carmen’s Best Dairy Products Inc., Carmen’s Best International Dairy Company Inc., Real Fresh Dairy Farms Inc. and The Laguna Creamery Inc. (TLCI) – into the latter where MPIC will infuse the cash.
MPIC said the transaction values the Carmen’s Best Group at P288 million and is conditional upon customary regulatory confirmation and approvals. The joint-venture company, however, is estimated to be capitalized at P388.24 million based on the value of MPIC’s 51 percent stake.
“MPIC and Carmen’s Best Group envision transforming TLCI into a fully integrated dairy business, serving local demand and eventually competing globally,” the group said.
Francisco Magsaysay, Carmen’s Best president said “this union makes us appreciative that MPIC sees the value of what we already built, while also elevating Carmen’s Best to a level beyond what we envisioned.
Manuel Pangilinan, MPIC chairman, said Carmen’s Best has more room for growth in the higher-end segment of the ice cream and dairy market while the middle income segment and overseas market offers opportunity.
Pangilinan said MPIC will work towards enhancing the efficiency of Carmen’s Best, improving yield of the group.
The Carmen’s Best Group is behind the home-grown premium ice cream brand, Carmen’s Best Ice Cream, and the country’s only locally pasteurized and homogenized fresh milk, Holly’s Milk. It produces yogurt and artisanal cheeses under the Carmen’s Best Natural Cheese and Holly’s brands.
Chaye Cabal-Revilla, MPIC chief finance officer said MPIC continues to ramp up investments in the agricultural sector with the MPIC Group looking at two to three more acquisitions in the months to come.
