Aboitiz buys out American partners in Fil-Am Foods

After buying out its partners in shipping line WG&A, holding firm Aboitiz Equity Ventures Inc. has done the same thing to its American partners in feed milling and swine production firm Fil-Am Foods Inc.

In a disclosure to the Philippine Stock Exchange, AEV corporate secretary Eugeniano Perez said the company’s 100 percent subsidiary Pilmico Food Inc. entered into a non-binding letter of intent (LOI) last Aug. 7 to acquire an additional 50-percent ownership in Fil-Am Foods.

Pilmico’s partners in Fil-Am foods are Tyson Foods Inc. and PM Nutrition Co. LLC, a wholly-owned subsidiary of Purina Mills LLC. The acquisition would bring up Pilmico’s ownership in Fil-Am Foods to 100 percent upon satisfaction of certain conditions, Perez said. The parties expect the financial closing of the transaction on or before Oct. 30 of this year.

Fil-Am Foods is registered with project incentives at the Board of Investment for its feed milling and hog raising facilities in Capas, Tarlac. As part of the LOI, PM Nutrition will continue to supply technology, feedmill management and associated technical support to Fil-Am Foods.

This, Perez said, is consistent with Fil-Am’s strategic direction of being a leader in technology in the industry and always providing differentiated products and services to its customers.

"This acquisition strengthens and further diversifies Pilmico’s focus and core competence in the grain milling industry," he added. – Conrado Diaz Jr.