Philippine firm RFM acquires Royal brand from Unilever in $47.8M deal

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Food and beverage manufacturer RFM Corp announced on Thursday that it has acquired the Royal brand and pasta business of Unilever Group. The transaction is valued at $47.8 million (PHP2.1 billion), according to GMA News.

Based on a disclosure to the Philippine Stock Exchange, RFM inked a deal with the Anglo-Dutch firm to transfer the Royal pasta brand and trademarks under RFM. Last October, the Philippine-based firm raised PHP1.62 billion via equity offering to fund its expansion goals, the report detailed.

According to RFM chief Jose A. Concepcion III, the addition of the Royal brand will strengthen the company's market leadership in the pasta area. Concepcion also said the Royal brand will complement its existing Fiesta pasta brand, the report said.

RFM is still on the lookout for other purchases that will boost its status in the food and beverage market. Concepcion said the company is also looking to improve its topline revenues and offset foregone earnings from the exit of its Swift meat business in 2012, the report added.

The RFM chief said the firm expects all its brands to have a strong performance this year amid a projected increase in consumer spending, GMA News reported.

Tags
Philippines, Philippine Stock Exchange

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