Anna Carreon | July 20, 2018
Pilmico International has acquired a majority stake in one of Asia’s largest privately owned agribusiness corporations, Gold Coin Management Holdings Limited (Gold Coin). The company signed a share purchase agreement with British Virgin Islands-based Golden Springs Group Ltd. (GSG) for a 75% equity interest in Gold Coin at US$334 million, making way for AEV’s food subsidiary to further expand its animal feed footprint in the region.
Pilmico International was chosen as the preferred bidder following a competitive bid selection process for the acquisition of Gold Coin shares from its holding company, GSG. Gold Coin, which is based in Singapore, is a major producer of animal feeds and operates 20 livestock and aqua feed mills across 11 countries in Asia.
ASEAN’s market size of over 500 million will bring many opportunities to expand our customer base. This acquisition serves as a platform towards achieving Pilmico’s strategy to grow our core feed milling business beyond ASEAN and now across Asia. This acquisition will add three million metric tons of volume which quadruples our overall feeds production capacity.
–Sabin M. Aboitiz
President and Chief Executive Officer
The Gold Coin acquisition is Pilmico International’s largest investment in the Asia-Pacific region to date and follows its 2014 purchase of a 70% stake in Vinh Hoan Feeds (VHF), one of Vietnam’s major aquafeed manufacturers. In 2017, it bought an additional 15% stake in VHF, effectively increasing its stake to 85%. Driven by its strategy to widen its footprint in Vietnam and diversify product portfolio, in September 2017, Pilmico International bought a 70% stake in Europe Nutrition Joint Stock Company (Eurofeed), an animal feeds manufacturer.
The Zuellig and Aboitiz families have known each other for generations. I am excited about the partnership with Aboitiz Group, one of the largest and most established conglomerates in the region. The partnership will strengthen Gold Coin’s growth profile and long-term value creation potential.
Golden Springs Group Ltd.
Established in Singapore in 1953, Gold Coin is a pioneer in animal nutrition and the manufacturing of scientifically balanced animal feed within Asia. Gold Coin is today one of the largest privately owned agribusinesses in the Region, employing over 3,000 people throughout 20 production facilities.
Founded by Peter Zuellig, Golden Springs Group is an enterprise active in the agriculture and healthcare sectors of emerging markets. In addition, via its alliance partner, Golden Springs Group is also in the domain of distribution of pharmaceutical products. With more than 10,000 personnel, Golden Springs Group is connected to over 50,000 customers who provide food and healthcare products to people in more than 30 countries, every day.
Message from Sabin M. Aboitiz, CEO, Pilmico Foods Corporation
July 20, 2018
Four years ago, Pilmico expanded within the ASEAN Region by exporting flour to countries like Indonesia, Thailand, and Hong Kong. Feeds followed suit and explored operations in countries like Vietnam and Indonesia, among others.
Our first international venture for feeds took place in 2014 when we acquired VHF in Dong Thap, Vietnam. This venture which today is known as Pilmico Vietnam Feeds gave us an added capability to carry a new product line – Aqua feeds – increasing our feed mill production capacity by 30%. Three years later, we expanded our presence in Vietnam with our second acquisition, the Europe Nutrition Joint Stock Company (Eurofeed), entering and introducing our brand Pilmico Animal Nutrition, JSC (Pilmico-Binh Duong) into the Vietnam animal feeds market. Today, Pilmico Binh Duong is steadily gaining ground. Our Pimico Vietnam Trading office in Ho Chi Minh, established in 2015, further supports the operations and actively looks for growth opportunities.
Venturing to new territories is exciting, but also challenging. It required sacrifices from our fellow partners but it also brought opportunities. It put us to the test and stretched our capability as a team.
The entire experience proved to be rewarding and pushed us to new limits, boosting our confidence to do more.
Today, I am happy to announce our largest acquisition by far. Pilmico has acquired a majority stake in one of Asia’s largest privately-owned agribusiness corporations – Gold Coin Management Holdings (“Gold Coin”). We entered into a sale and purchase agreement to acquire 75% of Gold Coin from its mother company Golden Springs Group.
Gold Coin, which is headquartered in Singapore, is a major producer of animal feeds and operates 20 livestock and aqua feed mills in several countries across the Asian region. This exciting acquisition will greatly expand our market reach and significantly increase our production capacity, quadrupling it to four million metric tons.
As a result, Pilmico emerges as a sizeable multinational company with a solid global market presence in 11 countries, backed by a talent pool that totals more than 4,000 employees. We now rank as one of the top feeds players in Asia Pacific with 24 manufacturing plants spread across 8 major countries in the Pan-Asean region.
We are truly grateful to the AEV and Pilmico partners who went the extra mile without hesitation to bring our Asean aspirations to reality.
By continuously living our values of Integrity, Teamwork, Innovation and Responsibility we have prepared ourselves for this moment. With the opportunity to work together with the Gold Coin team, I am certain that our future is more promising than ever.
Let us continue creating our very own Pilmico story today and in the future.