Del Monte Pacific secures $74.5-M fresh capital

MANILA, Philippines - Fruit and juice processing giant Del Monte Pacific Ltd. (DMPL), has secured $74.5 million in fresh capital from new investors, the company said in a disclosure to the Philippine Stock Exchange.

The equity infusion forms part of DMPL’s fundraising for its $1.675-billion buyout of the consumer food business of US-based Del Monte Foods.

“On Feb. 4, the company’s subsidiary DMPL Foods Ltd. has entered into a subscription agreement with each of third party investors,” DMPL said.

Specifically, Ace Profit Enterprise Ltd. and Anatoli Holdings Co. Ltd. agreed to invest $37.25 million each or a combined $74.5 million, DMPL said.

In October, DMPL announced its acquisition of the consumer food business of Del Monte Foods for $1.675 billion, giving DMPL access to the profitable US and South American market while boosting its net sales by around $1.8 billion.

DMPL, led by condiments king Joselito D. Campos Jr., earlier announced its plan to raise $150 million through a share placement.

DMPL Foods which will become the holding firm for the consumer food business of Del Monte Foods, said it will issue new shares to the third party investors.

Aside from the capital infusion, DMPL earlier signed a bridge loan facility with BDO Unibank Inc. for up to $350 million and a term loan facility deal with Bank of the Philippine Islands for up to $165 million to partially finance the acquisition.

Ace Profit and Anatoli Holdings are third party investors not associated with DMPL.

“Further neither Ace Profit or Anatoli Holdings, their respective directors, their respective shareholders nor their respective associates have any interest (direct or indirect) in the ordinary shares of the company,” DMPL said.

“The directors consider the investors as strategic investors since they are expected to provide linkages between their business networks in Asian markets and the consumer food business,” it added.

DMPL’s 23,000-hectare plantation in Mindanao is the world’s largest fully integrated pineapple operation with a 750,000-metric ton processing capacity.

DMPL produces, markets and distributes food, beverages, and related products in the Asia Pacific region and the Indian subcontinent, and has supply deals with trademark owners and licensees around the world.

Its principal shareholder, NutriAsia, leads the Philippine market for condiments (Datu Puti and UFC), specialty sauces (Jufran and MangTomas) and cooking oil (Golden Fiesta).

In January to September last year, DMPL posted a net income of $17.8 million, down five percent from a year ago due to non-recurring expenses such as transaction fees and dual listing in the Philippine Stock Exchange in June. Adding these back, net profit for the nine-month period would have been $20.7 million, or up 11 percent.

In the nine-month period, sales climbed 12 percent to $335.4 million from $300.2 million due to higher volume and better sales mix.