Macay Holdings Inc., a holding company led by businessman Alfredo Yao, is taking control of Kitchen City, the country’s leading food concessionaire, for P2 billion.
Macay said in a disclosure to the stock exchange it signed an agreement to acquire 100 percent of Artemisplus Express Inc., which operates under the trade name Kitchen City, as part of its strategy to diversify into food space.
Kitchen City serves clients mainly from BPO, corporate, manufacturing and hospital segments. It also provides catering services and recently ventured into the sale of packed meals and frozen meals.
“The acquisition of Kitchen City provides Macay the opportunity to diversify into the food service space and acquiring not only a market leader in cafeteria operations but the potential to expand beyond the existing 90 outlets it primarily services in Metro Manila,” the company said.
The Philippine Stock Exchange suspended the trading of Macay, pending submission of additional details on the transaction. Shares of Macay traded at P7.29 prior to the trading suspension,
Macay said with the acquisition, its priority was to accelerate the growth of Kitchen City and capitalize on potential synergies with its beverage business under ARC Refreshments Corp. and the rest of the Yao Group of Companies.
ARC Refreshment holds an exclusive license from RC Cola USA to manufacture and distribute RC Cola in the Philippines.
The acquisition of Kitchen City is the group’s foray into the food service business. “The acquisition will bring to fruition Macay’s vision to expand its business portfolio to other consumer products and services in the Philippines and in other Asian countries,” Macay said.
Kitchen City started out as canteen concessionaire in semiconductor plants, schools and BPO companies. It increased the number of stores in different companies in Metro Manila, Laguna and Cavite and ventured into catering business.
AlphaPrimus Advisors acted as financial advisor to Macay Holdings. PwC Philippines’ Corporate Finance Team acted financial advisor to the seller.
Macay said last year it was scouting for merger and acquisition opportunities to expand its portfolio outside carbonated drinks.