Macay Holdings Inc., the listed investment holding company of businessman Alfredo Yao, is acquiring RC Global Beverages Inc., which owns the global rights to the RC Cola brand, for $46 million.
Macay Holdings said in a disclosure to the stock exchange Wednesday its board of directors approved the purchase of the 100-percent interest in RCGBI.
RCGBI, which owns the rights to RC Cola brand globally, has the ability to grant bottling and distribution licenses to bottlers in Asia, Europe, Africa, the Middle East, North American and South America, except for the US.
Macay Holdings under the agreement will pay $21 million in equity value and assume RCGBI’s net debt of $25 million. The purchase price could be adjusted, depending on RCGBI’s net earnings performance in 2022.
Macay Holdings president Antonio Panajon said the acquisition would enable the company to expand geographically and provide diversification and increased opportunities.
Asiawide Refreshments Corp., a unit of Macay Holdings, is the exclusive licensee of RC products in the Philippines. It has rights over the brands RC Cola, Juicy Lemon, Fruit Soda Orange, Seetrus and Arcy’s Rootbeer in the country.
“The RC Cola brand is an iconic 117-year-old brand and will allow Macay to establish cross border relationships with different food and beverage companies in other countries, potentially leading to substantial opportunities in our current product offerings and offshore partnerships,” Panajon said.
Founded in Columbus, Georgia by Claud Hatcher in 1905, Royal Crown Ginger Ale made a name in the US and abroad by staying true to its Southern roots and out-of-the-box advertising campaigns.
The Philippines became one of its most successful overseas markets. Before the planned acquisition, Asiawide Refreshments Corp., a unit of Macay Holdings, the licensed bottler of RC Cola in the Philippines.
RCGBI has relationships with 32 bottlers in 49 countries, including the Philippines. The transaction is subject to the finalization of a share purchase agreement and other closing conditions.
ARC is also engaged in the business of trading of goods such as beverages.
Macay Holdings said earlier it was looking at various opportunities in the food and beverage sector to expand its portfolio and pursue growth opportunities in the space.
Macay acquired Artemisplus Express, operator of the canteen concessionaire Kitchen City, for P2 billion in 2020.
Share price of Macay Holdings closed unchanged at P4.59 on Wednesday.