The Keepers Holdings Inc., the liquor distribution company of businessman Lucio Co, said Wednesday it acquired 50 percent of the subscribed and outstanding shares of Cervia Global Trading Inc. (CGTI), marking a major move into the premium local spirits market.
The deal, approved by the company’s board of directors Tuesday, involves a one-time cash payment to four CGTI shareholders: Caesar Certeza, Mark Daniel Rivera, Vernon Carandang and Margherita Rauto. The total purchase covers 125,000 shares at P320 per share.
CGTI is known for producing the Filipino liqueur brand “SULÀ” and specializes in crafting premium local alcoholic beverages using Philippine-grown ingredients. The company distributes its products locally and internationally.
“The acquisition of a 50-percent stake in Cervia Global Trading, Inc. gives The Keepers Holdings, Inc. a strategic entry point into the premium local spirits market, while also positioning the company for growth in international markets,” The Keepers said in a disclosure to the stock exchange.
The Keepers expects the acquisition to strengthen its business and and financial position by expanding its portfolio and global reach in the liquor industry.
The company is the largest imported liquor distributor in the Philippines. It owns 100 percent of the outstanding shares of three major players in the Philippine liquor, wine and specialty beverage distribution business: Montosco, Meritus and Premier.
Through these subsidiaries, the company distributes leading international brands including Johnnie Walker, Chivas Regal, Glenfiddich, Suntory, Jinro, Jose Cuervo, Jim Beam, Penfolds and Red Bull.
In the first quarter of the year, The Keepers reported a net income of P690 million, up 14.3 percent from P604 million in the same period last year, driven by strong sales volume performance from the imported brandy segment.
Consolidated revenues reached P4.06 billion, a 20.9-percent growth from the previous year on the back of an 18-percent growth in volume of cases sold for the period.
