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San Miguel Pure Foods buys biscuit and cookie maker La Pacita


The food manufacturing arm of diversified conglomerate San Miguel Corp. officially entered biscuits and cookies business by closing the acquisition deal over the iconic La Pacita biscuit brand.
 
The new business is a "good consumer story" given the upbeat outlook on the economy that will be majority driven by private consumption, an analyst said Tuesday.
 
San Miguel Pure Foods Company Inc. has completed the acquisition of La Pacita biscuit and the flour-based snack business of Felicisimo Martinez & Co. Inc. on February 1, 2015 "upon the substantial fulfillment of the closing conditions of the transaction," San Miguel Pure Foods told the Philippine Stock Exchange Tuesday.
 
The acquisition includes the trademarks, formulations, recipes and other intangible properties relating to the La Pacita biscuit.

The cost of the deal was not disclosed.
 
La Pacita products include Pasencia, Supreme Flakes, Raisin Cookies, Camachile (Baby Finger Cookies), Butter Cookies and Club Crackers.
 
The acquisition will support the San Miguel Pure Food's flour business, Unicapital Securities Inc. research head Lexter Azurin told GMA News Online.
 
"This gives the company additional revenues and would result into better margins, which, in effect, would increase bottom line," he said.
 
"The company is exploring new opportunities in the market, taking advantage of strong consumer growth of the country since outlook is bullish, driven mainly by strong domestic consumption," Azurin added.
 
In September 2014, San Miguel Corp. failed in a solo bid for British snacks maker United Biscuits which owns the brands Jaffa Cakes and Twiglets.
 
La Pacita brand is a new addition to San Miguel Pure Food's existing brands of Purefoods, Magnolia, Tender Juicy, Monterey, Star, Dari Crème, B-Meg, SanMig Coffee and JellYace.
 
The company is engaged in making animal feed, raising poultry, as well as in producing flour, fresh and value-added meats, bread fill, dairy, cooking oil, coffee mix and coffee mix with cereals. – VS, GMA News
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