Splash closes Barrio Fiesta manufacturing arm purchase

Personal care manufacturer Splash Corp. on Thursday disclosed that it has completed the acquisition of the food manufacturing arm of Barrio Fiesta. "Further to our disclosures dated August 4 and August 10, 2011 regarding the acquisition of 80 percent of Barrio Fiesta Manufacturing Corp., please be informed that the transaction was closed yesterday, September 7, 2011," Splash told the Philippine Stock Exchange. Splash had earlier reported that it would be acquiring 80 percent of Barrio Fiesta Manufacturing Corp. for P472 million. The acquisition price was based on a discounted cash flow method, whereby projected future cash flows are "discounted at an interest rate to arrive at a present value." The acquisition price represented the purchase of Splash of BFMC’s 5.28 million shares at a price of P89.32 per share. Splash also said that it would be using part of the cash it raised from its initial public offering for the acquisition. BFMC was incorporated in 1987 and established to bottle, can, cure, preserve foods such as bagoong, shrimp or fish sauce, vinegar and other related native food products. Following the completion of the acquisition, BFMC's present chairman and president Bonifacio E. Ongpauco Jr. will remain as a director of the company. --CMA/OMG, GMA News