MPIC agri unit buys out Franklin Baker for P1B

Tycoon Manuel V. Pangilinan is strengthening his foothold in the coconut industry after he acquired Franklin Baker Group of Companies, making him one of the biggest players in the sector that has seen a surge in prices amid a global supply crunch.

- By Jasper Emmanuel Arcalas

Metro Pacific Agro Ventures (MPAV), a wholly owned subsidiary of Pangilinan's Metro Pacific Investments Corp., announced yesterday that it has entered into an agreement to acquire Franklin Baker.

"The transaction marks a major expansion of MPAV's agribusiness platform and reinforces its position as the leading player in the Philippines' food-grade coconut export industry," MPAV said.

MPAV currently has a 34.76-percent stake in Axelum Resources Corp., another significant player in the coconut industry.

The STAR first reported that the MPAV will buy out Franklin Baker, one of the world's oldest manufacturers of coconut products, for P1 billion to save its facilities from closing down.

Franklin Baker currently supplies a wide range of value-added coconut products, from desiccated coconut to virgin coconut oil, to over 50 countries.

The transaction, MPAV said, will provide Franklin Baker with the capital and strategic support needed to stabilize its operations, clear pending export backlogs and return to a path of "sustainable" growth.