Puregold to acquire PSMT Philippines

MANILA, Philippines — Retail tycoon Lucio Co is selling PSMT Philippines to his listed supermarket chain Puregold Price Club Inc. in a move seen to unlock the value of the private company.

PSMT, founded in 2006, is in wholesale distribution of a general line of groceries.

In a disclosure to the Philippine Stock Exchange (PSE), Puregold said the board of directors of Kareila Management Corp. approved the purchase of PSMT Philippines for P112.5 million.

“The board of directors of Kareila Management Corp., owner and operator of S&R membership warehouse, a wholly-owned subsidiary of Puregold Price Club Inc., approved to purchase 100 percent capital stock of PSMT Philippines,” Puregold disclosed.

Last September, Co also sold his stake in brandy firm Williams & Humbert SA to his publicly-listed liquor distribution company The Keepers Holdings Inc.

Puregold grew its consolidated net income by 13 percent to P6.5 billion in the nine months of 2022 on the back of a continued rise in traffic and increased business activities.

Third-quarter net income alone surged by 30 percent year on year, highlighting a dramatic recovery catalyzed by the easing of mobility restrictions and the return of business and consumer confidence after years of grappling with COVID-19.

During the period, the company opened 15 new Puregold stores.

The Puregold group had a total of 513 stores nationwide as of end-September.

These include 443 Puregold stores, 22 S&R membership shopping warehouses, and 48 S&R New York Style QSRs.