MPAV acquires coconut processor Franklin Baker

METRO PACIFIC AGRO VENTURES, Inc. (MPAV) is expanding its presence in the local coconut export industry through the acquisition of coconut processor Franklin Baker Group of Companies (Franklin Baker).

MPAV, a unit of the Pangilinan-led Metro Pacific Investments Corp. (MPIC), said in an e-mailed statement on Thursday that it had signed agreements for the acquisition of Franklin Baker.

Under the deal, MPAV will infuse capital into Franklin Baker to help stabilize its operations, clear pending export backlogs, and return to sustainable growth.

MPAV did not disclose the value of the acquisition, but earlier news reports placed the deal at around P1 billion.

Founded in 1921, Franklin Baker is one of the country’s most established coconut processors. It operates manufacturing facilities in Laguna and Davao and supplies various coconut products to over 50 countries. These include desiccated coconut, coconut water, virgin coconut oil, and coconut cream.

MPAV said the acquisition of Franklin Baker builds on its previous investment in listed coconut product exporter Axelum Resources Corp.

In 2023, MPAV acquired a 34.76% stake in Axelum through a P5.3-billion deal.

Franklin Baker and Axelum have a combined capacity to process more than 2 million coconuts daily, according to MPAV.

“With Franklin Baker and Axelum, we now have the opportunity to scale a globally competitive coconut platform — one that brings together world-class processing, long-standing customer relationships, and strong ties to our farming communities,” MPIC Chairman and Chief Executive Officer (CEO) Manuel V. Pangilinan said.

“This is a unique opportunity to strengthen a flagship export sector and help make Filipino agricultural products a global standard,” he added.

MPAV said the acquisition supports its strategy to create a vertically integrated agribusiness portfolio consisting of coconut investments through Franklin Baker and Axelum; dairy through Carmen’s Best and Bukidnon Milk Co.; and fruit and vegetable production through Metro Pacific Fresh Farms.

The deal is also expected to safeguard the jobs of over 5,000 workers and maintain a reliable market for more than 50,000 coconut farmers nationwide.

“This transaction is about growth. With Franklin Baker joining Axelum in our portfolio, we are building a coconut powerhouse that combines heritage, scale, and global reach,” MPAV President and CEO Jovy I. Hernandez said.

“Our goal is to strengthen the entire value chain — from farmer to processor to export markets — while cementing the Philippines’ leadership in the global coconut industry,” he added.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message that the acquisition will position the Metro Pacific group as a major player in the coconut industry.

“It’s a business with many challenges but also significant potential. They would have to boost productivity and efficiency through substantial investments to ensure coconut exports remain competitive, especially in the face of United States tariffs,” he said.

“We expect Metro Pacific to leverage its management acumen, operational discipline, and financial resources to make this a profitable and socially impactful business,” he added.

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in ����ý through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave