Vitarich Corp. is strengthening its grip on the poultry value chain with a P280 million acquisition that is set to raise its breeder capacity by about 8 percent, a move aimed at stabilizing chick supply and trimming production costs in a volatile market.
The listed agribusiness firm said its board approved the final terms for the purchase of privately held Broilers Club Inc. and its breeder farm facilities in Davao del Sur. Once completed, Broilers Club, which operates under the name Southern Sunrise Agriventures, will become a wholly owned subsidiary, while its facilities will be integrated into Vitarich’s breeder operations.
The deal covers 100 percent of Broilers Club’s shares, shareholder advances, and breeder farm assets including land, buildings and equipment.
Of the total consideration, P95 million will pay for shares, P130 million will settle shareholder advances, P25 million will cover land purchases, and P30 million will retire an existing bank loan tied to one of the properties. The valuation was based on a third party appraisal of the assets.
Vitarich has already paid P10 million as option money. Another P140 million will be paid at closing, with the remaining P130 million to be settled after the transfer of shares and land titles.
The acquired property spans 46,360 square meters in Barangay Darong, Sta. Cruz, Davao del Sur, and has been supplying hatching eggs to poultry aggregators since 2018.
By owning more of its breeder base, Vitarich reduces exposure to supply swings and price pressures in the broiler market.
The added capacity not only supports growth but also tightens control over a critical input, positioning the company to respond faster to demand shifts while protecting margins.
