MANILA, Philippines - Snacks and beverage giant Universal Robina Corp. (URC) is consolidating into its operations a wholly-owned subsidiary engaged in the production of flexible packaging materials.
In a disclosure to the Philippine Stock Exchange, the food manufacturing arm of the Gokongwei family said its board approved the merger of CFC Clubhouse Property Inc. (CCPI) with and into URC.
CCPI, which started commercial production in 2007, is one of the major suppliers of flexible packaging materials for URC’s snacks and beverages division.
URC said CCPI is currently expanding its capacity to accommodate the increase in demand for dry laminated and extruded wrappers.
“The proposed merger is expected to benefit URC in the reduction of expenses through the economies of scale, centralized administration and greater efficiency,” URC said.
“URC will provide further updates on the final merger consideration and timing of closing and funding sources when they are finalized,” it added.
URC’s earnings during the first quarter of its current fiscal year ending September rose 12.6 percent year-on-year to P3.25 billion as sales grew 18.7 percent to P26.95 billion.
URC is one of the largest branded consumer food and beverage product companies in the Philippines and also has a significant and growing presence in Southeast Asian markets.
The listed company is behind top brands such as Jack n’ Jill, Hunt’s, C2, Blend 45, Uno Feeds and Cream All.