Balai ni Fruitas Acquires 40-Year-Old Legacy Brand Sugarhouse

Balai ni Fruitas Inc., a prominent counter service bakery operator in the Philippines, has announced its signing of a Memorandum of Agreement (MOA) to acquire the esteemed legacy brand Sugarhouse, along with various assets of the company.

The Balai ni Fruitas-Sugarhouse MOA includes the acquisition of assets such as intellectual property, technical know-how, delivery, commissary, and store equipment, with the former also taking over the latter's catering business. I Image: Sugarhouse Facebook

Sugarhouse, established in 1983, has gained recognition for its iconic Chocolate Truffle and French Apple Pie, as well as a wide range of baked goods, pastries, breads, and meals over the years.

The acquisition of Sugarhouse by Balai ni Fruitas is expected to enhance the company's product offerings, particularly in the cake category, and enable it to reach a broader customer base.

Lester Yu, President and CEO of Balai, emphasized the strategic value of the acquisition, stating, "In line with our commitment to delivering shareholder value, we are complementing our organic growth with a key acquisition that will allow us to offer more products to more Filipinos."

With the acquisition, Balai anticipates gaining additional production capacity to support its growth trajectory, along with significant synergies with its existing brands.

Mr. Yu expressed excitement about the acquisition, noting, "We believe this acquisition will integrate seamlessly into our brand lineup. Similar to our past acquisitions, we are committed to revitalizing the Sugarhouse brand and elevating it to new heights."

The MOA includes the acquisition of assets such as intellectual property, technical know-how, delivery, commissary, and store equipment, with Balai also taking over Sugarhouse's catering business.

The transaction is expected to be completed on or before May 1, 2024.

Balai ni Fruitas Inc., a subsidiary of Fruitas Holdings Inc., currently operates three well-loved brands in its portfolio: Balai Pandesal, Buko ni Fruitas, and Fruitas House of Desserts, with over 100 active stores spread across these brands.