Jun
17
Calata Corp., a listed agriculture company, said Tuesday it completed the acquisition of the meat business of the Galicia Group, a major supplier of SM and Puregold Supermarkets.
Calata corporate secretary Josie Marie Fabella said in a disclosure to the stock exchange the company finalized the acquisition of the 51-percent controlling interest in the meat business of the Galicia Group.
Fabella said Calata signed a joint venture agreement with Galicia Group to form Brookfields Meat Inc.
“Calata Corp. acquired 51 percent of the issued and outstanding capital stock of Brookfields Meat Inc. effective June 16, 2014. Upon actual operation of Brookfields Meat Inc. it will be deemed a subsidiary of Calata Corp. and consolidated in the reporting of audited financial statements,” Fabella said.
Fabella said Brookfields would take over the meat business of the Galicia Group.
“The agreement will be that the company will fund the nationwide operations of Brookfields Meat Inc. The profit sharing scheme will be based on the equity owned which is 51 percent for Calata Corp. and 49 percent for the Galicia Group. Both parties will co-manage the operations,” Fabella said.
The Galicia Group is the sole and exclusive supplier of pork, beef and chicken meat to the SM Supermarkets for more than 10 years. It is also a major supplier of the Puregold Supermarkets.
Fabella said Calata would integrate its business model by including the meat business into its existing revenue streams such as feeds distribution business and hog breeding.
He that Calata intended to aggressively pursue the meat business by rapidly expanding operations including the establishment of major supply agreements with large-scale supermarkets and signing supply agreements with largest retail chain Puregold Supermarkets.
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