MANILA, Philippines — Puregold Price Club Inc., the flagship retail chain of businessman Lucio Co, is bolstering its portfolio with the acquisition of Puremart stores.
Puregold is purchasing Puremart stores, including its leasehold improvements, furniture, fixtures, equipment and merchandise inventory with up to P567.5 million book value from Tower 6789 Corp.
Tower 6789 is a domestic corporation wholly owned by League One Inc., a company 100 percent owned by the Co family.
As a related-party transaction, Puregold said the matter was initially endorsed for the approval of its audit committee.
Puremart has 120 to 130 stores located across Metro Manila, Camanava, Rizal, Bulacan and South Luzon.
Puregold said the consideration for the acquisition is substantially below 10 percent of its book value.
From January to September, Puregold reported a net income of P6.9 billion, up by 4.5 percent from P6.6 billion in the same period last year.
Revenue for the period grew by 9.1 percent to P151.97 billion from last year’s P139.3 billion.
The company recorded positive same store sales growth of 3.5 percent from Puregold stores and 4.1 percent from S&R Warehouse clubs driven by higher traffic and basket size.
“The company continues to see a buoyant trajectory in topline growth for the remainder of 2024,” Puregold said.
The company opened 19 new Puregold stores, three S&R Membership Shopping Warehouse and three S&R New York Style QSR during the nine-month period.
As of end September, the group had a total of 591 stores nationwide composed of 505 Puregold stores, 29 S&R Membership Shopping Warehouses and 57 S&R New York Style QSRs.