Fruitas terminates plan to buy Surehealth Clinic

MANILA, Philippines — Fruitas Holdings Inc., the listed beverage and kiosk operator, has terminated discussions with Surehealth Multi-Specialty & Diagnostic Clinic Corp.

This comes less than a month after entering into an agreement to acquire 100 percent of the shares of Surehealth Clinic.

“Management recognized concerns that this may become a distraction from pursuing opportunities in its core food and beverage retail business,” Fruitas said in a disclosure yesterday.

There were concerns in the market that came out after Fruitas earlier announced the acquisition. One observation was that Surehealth is owned by Maxima Torio, the mother of Fruitas CFO and treasurer, Juneil Dominic Torio.

Fruitas, however, said Torio was not involved in the evaluation of the potential acquisition.

“With the decision to terminate discussions to acquire Surehealth Clinic, management is reinforcing its commitment to focus resources to take advantage of the expected recovery and harnessing the significant growth potential of its foodservice business,” Fruitas said.

In particular, it will continue to enhance the accessibility of its products, both through physical and digital channels. It will also carry on the expansion of its community store network, with emphasis on Balai Pandesal which it recently acquired.

Fruitas has around 1,000 stores across the country and over 25 brands in its portfolio as of end-2020.

Its portfolio comprises Fruitas Fresh from Babot’s Farm, Buko Loco, Buko ni Fruitas, De Original Jamaican Pattie, Johnn Lemon, Juice Avenue, Black Pearl, Friends Fries, The Mango Farm, 7,107 Halo Halo Islands, Tea Rex, Kuxina, SHOU La Mien Hand-Pulled Noodles, and Sabroso Lechon.

In addition to its line-up are Fruitas dairy-based ice cream and the Soy & Bean soy product line, including Soy & Bean soy-based ice cream and Balai Pandesal.

Fruitas will continue to open more community stores to make these products available to a wider market.

The company is targeting to open 100 community stores this year and to double it to 200 next year.