Sweet deal: Balai buys out Sugarhouse
In line with our aim of delivering shareholder value, we are complementing our organic growth with a key acquisition that will allow us to serve more products to more Filipinos
Daily TribuneIn line with our aim of delivering shareholder value, we are complementing our organic growth with a key acquisition that will allow us to serve more products to more Filipinos
Balai ni Fruitas Inc. (BALAI), a counter-service bakery chain owned by businessman Lester Yu, is expected to widen its customer base following its buyout of the legacy brand Sugarhouse and its assets.
BALAI signed the Memorandum of Agreement on Thursday to facilitate the acquisition of Sugarhouse, which is expected to be closed within the month.
“In line with our aim of delivering shareholder value, we are complementing our organic growth with a key acquisition that will allow us to serve more products to more Filipinos,” BALAI president and chief executive officer Yu said.
“We are excited with this new acquisition and believe this will integrate well into our brand line-up. Similar to the past acquisitions of the House of Fruitas, we will invigorate the brand and seek to bring it to new heights,” he added.
Increased offerings
BALAI acquired Sugarhouse to expand its product offerings, particularly in the cake category, and reach a wider customer base.
Likewise, it will also give the company access to additional production capacity to fuel its growth.
The acquisition includes Sugarhouse’s intellectual property, technical know-how, delivery, commissary and store equipment.
BALAI will also take over the catering business of Sugarhouse, which was established in 1983 and is renowned for its scrumptious baked goods and pastries.
The company is well-known for its cake offerings, including its iconic Chocolate Truffle and French Apple Pie.
Along with cakes, Sugarhouse has expanded its menu to include a wide range of breads, pastries and meals.
Last year, BALAI’s net income soared by 58 percent to P59 million from P37 million in 2022.
The bottom line improvement was driven by the 57 percent revenue improvement, which clocked in at P535 million in 2023, from P341 million in 2022.
