Fruitas Holdings Inc is gearing to close an acquisition transaction by the end of 2019. It has acquired one food company, and the closing process is clearly underway.
This activity is a sign that the company is doing well. After all, it comes after a very successful initial public offering just in November, worth an estimate of P1 Billion.
Speaking with Philippine Star, the founder, and CEO of Fruitas, Lester Yu revealed that this is hardly the last acquisition it will make.
Instead, there are two more food companies that it will be acquiring in the next few months. Yu claimed that Fruitas Holdings is already in talks with the two targeted companies.
More to Acquire in 2020
And there’s no stopping it after the three has been acquired by 2020.
According to Yu, Fruitas is looking to include more in the roster of acquired companies after these initial three.
The company will make these acquisition choices ad decisions based on the size and value of the companies, the CEO added.
Fruitas plans to raise its food acquisition budget in 2020 to an estimate of P150 million. Once this budget has been maximized or used up, the next actions to achieve returns will be taken.
Of course, the first thing to do is to grow these newly acquired brands. It’s the only way they can recoup the acquisition costs.
Suffice to say, Fruitas is looking into a very bright future. It practically fired the market with its debut just before the previous month ended on November 29.
OVERSUBSCRIPTION IN IPO
Its IPO was well-received by seasoned retail and institutional investors. All the clamoring for its stock even leads to oversubscription.
It can be taken as a good sign of how well the company is presently doing.
In the end, the IPO finished at P1.71 per share.
Apart from this development, the company also successfully hit a milestone this year. It already reached its target of 1,000 stores, even surpassing that number with a total of 1,036 stores nationwide at present.
This is a significant leap from just having 930 stores at the end of 2018. By June 2019, it actually only had 949 stores.
MILESTONES AFTER MILESTONES
A lot has certainly happened in the latter part of 2019.
Fruitas is now accessible in key provinces of Cavite, Bulacan, Davao, among many more others apart from Metro Manila.
It also successfully diversified into having a coffee and tea presence by relaunching Coffee Talk.
Given how it started from a single kiosk In 2002, strategically located In SM Manila, the company indeed showed what It could do in less than two decades.
Both the high proceeds from the IPO, as well as the acquisition of future brands are signs that Fruitas is heading towards more massive expansions in the future.
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