COURIER business operator LBC Express Holdings Inc. announced on Thursday that it is buying Araneta family’s cargo and remittance companies based in the United States and its territories.
The Araneta-led companies also use the LBC brand but are currently not folded into publicly listed LBC Express.
In its disclosure to the Philippine Stock Exchange, the company said its buying LBC Mundial Corp., LBC Mabuhay Hawaii Corp., LBC Mabuhay North America Corp. and LBC Mabuhay Saipan Inc. for a total of $8.35 million.
With the exception of Saipan, all other companies are currently owned by LBC Holdings USA Corp., the selling company also owned by the family.
The sellers for LBC Saipan, meanwhile, are Santiago G. Araneta, Fernando G. Araneta, Maria Monica G. Araneta and Juan Carlos G. Araneta
LBC Express said it will pay for all the companies in cash.
The company said it is buying LBC Saipan for $207,652; LBC Hawaii for $342,000; LBC Mundial, the Araneta’s business in California for $6.86 million; and LBC North America, the family’s operation in New Jersey, for $1.13 million.
“The acquisition is expected to benefit the company by contributing to the global revenue stream,” it said in a disclosure.
LBC Express earlier said it is optimistic of hitting its target of P985 million in core profit for 2017, a 7-percent target growth from the previous year’s P920 million.
Enrique Rey Jr., the company’s CFO, said topline target is to hit P9.8 billion, with the first half figures at P4.9 billion. Last year LBC generated P8.7 billion in revenues.
“There are a lot of exciting things to do at the latter part of the year that will further boost our income numbers,” Rey said earlier.