MPIC agricultural unit buys out Franklin Baker for P1 billion

Building a coconut powerhouse

MANILA, Philippines —  Tycoon Manuel V. Pangilinan is strengthening his foothold in the coconut industry after he acquired Franklin Baker Group of Companies, making him one of the biggest players in the sector that has seen a surge in prices amid a global supply crunch.

Metro Pacific Agro Ventures (MPAV), a wholly owned subsidiary of Pangilinan’s Metro Pacific Investments Corp., announced yesterday that it has entered into an agreement to acquire Franklin Baker.

“The transaction marks a major expansion of MPAV’s agribusiness platform and reinforces its position as the leading player in the Philippines’ food-grade coconut export industry,” MPAV said.

MPAV currently has a 34.76-percent stake in Axelum Resources Corp., another significant player in the coconut industry.

The STAR first reported that the MPAV will buy out Franklin Baker, one of the world’s oldest manufacturers of coconut products, for P1 billion to save its facilities from closing down.

Franklin Baker currently supplies a wide range of value-added coconut products, from desiccated coconut to virgin coconut oil, to over 50 countries.

The transaction, MPAV said, will provide Franklin Baker with the capital and strategic support needed to stabilize its operations, clear pending export backlogs and return to a path of “sustainable” growth.

The deal will also safeguard the livelihoods of over 5,000 workers and ensure a reliable market for more than 50,000 coconut farmers nationwide, MPAV added.

MPAV said Franklin Baker and Axelum now have combined capacity to process over two million coconuts daily and account for a “substantial share” of US coconut exports.

Axelum ships processed coconuts to more than 30 markets and develops a variety of products such as coconut cream, coconut milk, coconut water and desiccated coconut.

Pangilinan said MPAV now has a “unique” opportunity to strengthen the country’s flagship agricultural export and make Philippine agricultural products a “global standard.”

“The coconut is one of the Philippines’ most important and iconic crops – something we should be proud of,” said Pangilinan, chairman and CEO of MPIC.

“With Franklin Baker and Axelum, we now have the opportunity to scale a globally competitive coconut platform – one that brings together world-class processing, long-standing customer relationships and strong ties to our farming communities,” Pangilinan added.

MPAV president and CEO Jovy Hernandez said the firm is now building a “coconut powerhouse” that combines heritage, scale and global reach.

Hernandez added that the firm is keen on improving the entire coconut value chain while cementing the country’s leadership in the global coconut industry.

Pangilinan earlier disclosed that they were awaiting clearance from the Philippine Competition Commission to push through with the acquisition of Franklin Baker.

He said the acquisition of Franklin Baker would not lessen competition in the domestic market since its products are primarily exported abroad just like Axelum.

“I hope they can see their way through to approval because most of the products of Axelum and Franklin Baker are for exports. We are not competing here,” he said.

The acquisition of Franklin Baker bodes well for the economy since it is a dollar-earning business as most of its products are shipped out of the country, Pangilinan said.

“The country needs dollars today,” he said.

Data obtained by The STAR showed that Franklin Baker has the capacity to manufacture at least 75,000 metric tons of desiccated coconut in a year through its processing facilities. At this rate, the company can account for 43 percent of coconut exports last year at 173,000 MT.

Preliminary data from the Philippine Statistics Authority showed that coconut oil exports rose by 86 percent to $2.19 billion last year, from $1.18 billion in 2023.

Further, exports of desiccated coconut grew by a fifth to $296 million, from $247.25 million, as a result of rising prices in the international market.