A significant expansion is underway for Vitarich Corp., poised to reshape its poultry operations in the Davao region. The company’s board recently finalized the terms for a P280-million acquisition of crucial breeder farm facilities in Davao del Sur, signaling a strategic move to strengthen its position in the market.
The agreement encompasses more than just land and buildings; it’s a comprehensive takeover. Included in the deal are vital improvements, essential equipment, and a controlling stake – 125,000 common shares – in Broilers Club, Inc. (BCI), alongside outstanding advances to BCI shareholders.
A detailed breakdown of the purchase price reveals a carefully considered allocation of funds. P95 million is earmarked for the BCI shares themselves, while P130 million will settle existing advances to the shareholders. An additional P25 million covers land owned by two BCI shareholders, and P30 million will extinguish BCI’s outstanding bank loan.
Vitarich’s vision extends beyond simply acquiring assets. The plan is to integrate the breeder facilities directly into its own farming operations, transforming BCI into a fully owned subsidiary. This consolidation promises greater control and efficiency across the entire production process.
The anticipated benefits of this acquisition are substantial. Vitarich expects to stabilize its supply of broiler chicks, a critical component of its business, and simultaneously drive down production costs. Experts project an impressive 8% increase in the company’s total breeder output.
Broilers Club, Inc. is a well-established, privately held corporation with a strong presence in poultry and egg production throughout Davao. Its existing operations will now become integral to Vitarich’s broader strategy.
The scale of this acquisition prompted a temporary halt in trading of Vitarich shares on the Philippine Stock Exchange. The exchange classified the deal as a “substantial acquisition,” requiring a more thorough disclosure to ensure transparency for investors.
Finalization of the definitive agreement and all related contracts is expected within February, paving the way for a transformative chapter in Vitarich’s growth story. The transaction remains subject to standard closing conditions, including full payment and the execution of all necessary documentation.
