GOKONGWEI-LED Robinsons Retail Holdings, Inc. is getting into the motorcycle business via a P146.4-million deal for 100 percent of Premiumbikes Corp.
The conglomerate on Monday said the purchase, to be done via subsidiary Robinson’s Supermarket Corp., had been approved by its board earlier in the day.
Premiumbikes, which currently operates 214 stores nationwide, was bought from JG Summit Holdings Inc. President and CEO Lance Gokongwei.
The purchase price was said to be equivalent to 1.0x Premiumbikes’ audited book value for 2024.
“With consistent profitability over the past few years, Premiumbikes is well-positioned for integration into a retail operator like Robinsons Retail,” the conglomerate said in a statement.
“This acquisition enables Robinsons Retail to enter the growing motorcycle market in the Philippines, in line with its strategy to diversify revenue streams and expand into profitable retail formats,” it added.
“Rising demand for motorcycles points to a promising industry outlook. The market remains underpenetrated, with a motorcycle possession ratio of eight people to one motorcycle in the Philippines, compared to 4:1 in Indonesia and Vietnam, and 3:1 in Thailand.”
Premiumbikes recorded net sales of P4.17 billion last year, up 15.2 percent compared to a year earlier, while earnings before interest, taxes, depreciation and amortization was 36.7-percent higher year on year at P324.2 million.
“This acquisition marks a key milestone for our company as we enter a new and fast-growing category that is also profitable,” said Stanley Co, president and CEO of Robinsons Retail.
“This move reflects our commitment to enhancing the retail experience and providing accessible, reliable, and affordable products that meet the evolving needs of Filipino consumers.”
Premiumbikes General Manager Joselito Pojol, meanwhile, said: “We are excited to become part of the Robinsons Retail group and look forward to bringing our stores and services to more communities across the country.”
“The Philippines still has a low motorcycle penetration ratio compared to other Southeast Asian markets, which gives us a lot of room to grow.”
Robinsons Retail shares rose by 15 centavos, or 0.38 percent, to P39.60 apiece on Monday amid a 0.52-percent drop for the benchmark Philippine Stock Exchange index.
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