Puregold spends P300 M to beef up portfolio

MANILA, Philippines - Grocery chain Puregold Price Club Inc. spent roughly P330 million to beef up its portfolio by acquiring Eunilaine and Grocer E.

In a disclosure, Puregold said it bought 290,000 common shares of Company E Corp. representing its total outstanding shares at P1,137.93 per share or a total transaction value of P329.99 million.

Company E owned four operating Eunilaine foodmarts and 11 operating Grocer E supermarts.

“The transaction is envisaged to consolidate smaller supermarket operators, which is feeding the merger and acquisition component of the expansion plans of Puregold,” the company said.

Puregold said it also wants to capitalize on the growing consumer needs of the community and residential markets.

The 15 Eunilaine foodmarts and Grocer E supermarts are located in Metro Manila (seven branches), Rizal province (six stores) and Cavite (two outlets).

Puregold said the acquisition will increase its customer base, particularly in the C and D markets in the areas of operation of the Enciso family’s Company E.

Puregold, which is the closest competitor of grocery giant SM Retail Inc., will convert the Eunilaine and Grocer E branches into Puregold Supermarkets or Extra format.

In May, Puregold acquired all 19 branches of Parco Supermarket. The grocery chain allotted P200 million for the refurbishment of the Parco chain.

The Lucio Co-led grocery chain ended last year with 156 stores in operations, composed of 131 Puregold Hypermarkets, Supermarkets and Extras; 19 Parco Supermarkets; and six S&R warehouse membership shopping clubs.

As of end-2012, Puregold had 77 stores in Metro Manila, 45 in Southern Luzon, 33 in Northern Luzon and one in the Visayas.

This year, Puregold is branching out in Mindanao with the opening of its flagship store in Cagayan de Oro and an S&R Membership Club in Davao as part of plans to hit its 200-outlet target ahead of the 2015 schedule.