BALAI ni Fruitas buying Sugarhouse

Publicly-listed Balai ni Fruitas Inc., a leading Philippine counter service bakery operator, is acquiring the 40-year-old legacy brand Sugarhouse and various assets related to the business.

In a disclosure to the Philippine Stock Exchange, the firm said it has signed a Memorandum of Agreement to acquire the brand and its assets on April 18, 2024. Completion of the transaction is expected to take place on or before May 1, 2024.

Sugarhouse started in 1983, offering baked goods and pastries to its customers. It is known for its cake offerings, including its iconic Chocolate Truffle and French Apple Pie, and has also expanded its menu to include a wide array of breads, pastries, and meals.

“The acquisition of Sugarhouse will allow BALAI to expand its product offerings, particularly in the cake category and tap a broader customer base.

BALAI will also gain additional production capacity to fuel its growth. BALAI also anticipates significant synergies with its existing brands,” the firm said.

The acquisition includes assets such as intellectual property, technical know-how, delivery, commissary and store equipment. BALAI will also take over the catering business of 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,” said BALAO President and CEO Lester Yu.

He added that, “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.”

BALAI is 75 percent-owned subsidiary of Fruitas Holdings Inc., which is also controlled by Yu. Since the acquisition of certain assets of Balai Pandesal in June 2021, the company has grown the Balai Pandesal store network from 5 to more than 50 as of December 31, 2023.