MACAY board OK’s move to acquire 100% of RC Global Beverages

LISTED investment holding company Macay Holdings, Inc. (MACAY) announced on Wednesday that its board of directors had approved the plan to acquire 100% of RC Global Beverages, Inc. (RCGBI), which owns the rights to the RC Cola brand globally.

“The transaction is subject to the finalization of a share purchase agreement and other closing conditions,” the MACAY said in a disclosure to the stock exchange.

“Under the agreement, MACAY is paying cash for $21 million in equity value and assuming net debt of $25 million,” the company added.

At the same time, it said that there will be a purchase price adjustment “depending on RCGBI’s net earnings performance for the year 2022.”

RCGBI, according to MACAY, has the ability to grant bottling and distribution licenses to bottlers in Asia, Europe, Africa, the Middle East, and in North and South America.

It has existing relationships with 32 bottlers in 49 countries, including the Philippines, MACAY said.

“Macay Holdings has been in the last few years looking at various opportunities in the food and beverage sector to expand our portfolio, and pursue growth opportunities in this space,” MACAY President Antonio I. Panajon said.

“We acquired Kitchen City in 2020 and that allowed us to enter the institutional customer space and cross sell our other products,” he noted.

He said the latest acquisition allows the company “to expand geographically and provide diversification and increased opportunities.”

“The RC Cola brand is an iconic 117-year-old brand and will allow MACAY to establish cross border relationships with different F&B companies in other countries, potentially leading to substantial opportunities in our current product offerings and offshore partnerships,” Mr. Panajon said.

On the stock exchange on Tuesday, shares of MACAY closed unchanged at P4.59 apiece. — Justine Irish D. Tabile