Sugarhouse, Big Chill fail to seal deal
MANILA, Philippines - The deal between fruit juice retailer Big Chill and cake shop Sugarhouse is not pushing through.
This was disclosed by Big Chill's parent firm, listed food producer and trader AgriNurture, to the stock exchange on Tuesday, July 17, after both groups entered into a memorandum of agreement last February 13.
"After conducting the legal, tax and financial due diligence, the parties failed to reach an agreement on the proposed acquisition of all the tangible and intangible assets pertaining to the operations of Sugarhouse restaurants/branches/kiosks. Thus the transaction has been put on hold until further notice,” AgriNurture wrote.
If the deal pushed through, Sugarhouse, a 3-decade old brand controlled by the Salazar family with about 13 outlets nationwide, would have been the latest in the expanding retail outlets under The Big Chill group.
AgriNurture acquired a 51% stake in The Big Chill in 2011, increasing the aggressive listed firm's retail outlets to more than 50.
Among AgriNurture's investors is American agribusiness giant Cargill which has a 28% stake in the local player.
AgriNurture has been aggressive in expanding its food retail business, via The Big Chill, and following the pattern of vertically integrated operations. In a supply chain, members of a vertically integrated companies produce a different product to satisfy a common need.
Parent firm AgriNurture produces and distributes fruit beverages and puree, dried fruit snacks, processed fruit mix, frozen fruits & vegetables, rice products, tomato paste and fresh flowers, which it distributes to various retail chains, including that of its own The Big Chill.
17 July 2012