11 Mar 2026

Vitarich expands with acquisition of breeder farm in Mindanao

The company has finalized its USD 4.8M acquisition of Broilers Club Inc in Davao del Sur, boosting breeder output by 8% and consolidating operations.

aviNews Asia

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Philippine poultry integrator Vitarich Corporation has completed its USD 4.8 million acquisition of Broilers Club Inc. (BCI) in Davao del Sur. The signing of the Definitive Agreement on February 23, 2026 marked the closing of the deal, giving Vitarich full ownership of BCI’s breeder farm assets.

New assets under control

The acquisition covers a 4.6 hectare parcel of land in Sta Cruz, Davao del Sur, along with breeder farm facilities and equipment. BCI, also known as Southern Sunrise Agriventures, was established in 2018 to produce hatching eggs for poultry aggregators.

With the deal finalized, Vitarich expects breeder output to increase by 8%, ensuring a more reliable supply of broiler chicks nationwide. BCI will now supply 100% of its day‑old chicks to Vitarich, with earnings consolidated into the latter’s books.

Supply chain stability and regional positioning

The acquisition is part of Vitarich’s broader strategy to secure long‑term poultry supply amid rising demand in the Philippines and Southeast Asia. By integrating BCI’s breeder operations, Vitarich strengthens its position against regional competitors.

The deal also helps insulate the company from supply chain volatility and rising feed costs, while lowering production expenses through vertical integration.

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Board approval and alignment

The transaction was approved by Vitarich’s board of directors, following the recommendation of its Organizational and Business Development Committee. This underscores strong internal alignment and strategic intent behind the expansion.

The acquisition did not require Philippine Competition Commission approval, as it falls below the USD 59.6 million threshold.

Transaction structure

The USD 4.8 million consideration was structured across several payments:

USD 1.62 million for 125,000 common shares, representing full ownership of BCI.
USD 0.51 million reimbursing shareholders for a bank loan already settled.
USD 0.43 million for land and improvements registered under two shareholders.
USD 2.22 million for shareholder advances, later converted to equity.

An initial USD 0.17 million had been paid earlier as option money. USD 2.38 million was settled at closing, while USD 2.22 million will follow after transfer of shares and land titles.

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