AgriNurture attempt to take over Sugarhouse hits snag

MANILA, Philippines - Listed fruit and vegetable grower AgriNurture Inc. (ANI) said it failed to clinch a deal to take over bakeshop-restaurant chain Sugarhouse.

“After conducting the legal, tax and financial due diligence, the parties failed to reach an agreement on the proposed acquisition of all the tangible and intangible assets pertaining to the operation of all Sugarhouse restaurants, branches and kiosks,” ANI told the Philippine Stock Exchange yesterday.

As a result, the transaction has been put on hold until further notice, ANI added.

ANI chairman and president Antonio Tiu, however, remains hopeful that a deal can still be worked out with the owners of Sugarhouse. “We’re just waiting for them. We have strict standards to meet to ensure proper due diligence and a successful acquisition.”

Under the agreement reached last February, ANI, through unit The Big Chill Inc., will acquire 100 percent of Sugarhouse from the Salazar family.

Sugarhouse, a premier cake shop, has 14 branches across the country since it started operations in 1993. In 2008, it went into major expansion, opening 11 new stores, four of which are kiosks offering mainly cakes, pastries, beverages and a few light meals.

Among its best-sellers are blueberry cheesecake, chocolate truffle, strawberry shortcake, chocolate mousse, black magic and French apple pie.

ANI is on a buying binge, eager to feed its growing appetite as part of its goal to become a global leader in providing nutrition from farm to fork.

The company is engaged in the management and operation of food and beverage outlets under a range of brands that cater to different market segments. Fruit shake retailer TBC is hoping to grow its revenue 10-fold in the next five years through the expansion of its product offferings.

In 2011, ANI obtained the master franchise for Tully’s Coffee, a Seattle-based international coffee brand that serves authentic handcrafted coffee and artisan food offerings in a community-centered environment.

Tully’s first flagship store in the Philippines, located at McKinley Park Residences in Bonifacio Global City, was launched last November.

ANI is expanding its presence overseas with a string of planned acquisitions that may entail investments of at least P2 billion. Plans are underway to acquire food distribution and production companies in Hong Kong, China, Australia, Europe and the US.

The company’s board approved last week the establishment of a wholly-owned overseas unit, AgriNurture HK Holdings Ltd., that will take charge of planned acquisitions in the international markets.

The new unit will also be listed on the Hong Kong Stock Exchange in the next six to nine months.