Yao’s Macay Holdings acquires RC Cola firm

MANILA, Philippines — Macay Holdings Inc., the holding company chaired by Alfredo Yao, will acquire RC Global Beverages Inc. (RCGBI), which owns the rights to the RC Cola brand globally, allowing Macay to expand overseas.

In a regulatory filing, Macay Holdings said its board of directors “approved the acquisition by the company of 100 percent of the shareholdings in RCGBI.”

RCGBI has the ability to grant bottling and distribution licenses to bottlers in the continents of Asia, Europe, Africa, the Middle East, and in North and South America, except for the US.

At present, RCGBI has existing relationships with 32 bottlers in 49 countries including the Philippines.

In its disclosure, Macay said it would pay $21 million in equity value and assume net debt of $25 million. There will also be a purchase price adjustment depending on RCGBI’s net earnings performance for 2022.

The transaction is subject to the finalization of a share purchase agreement and other closing conditions.

Macay president Antonio Panajon is optimistic the company’s newest acquisition would translate to more growth.

“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,” he said.

The company acquired Kitchen City in 2020, allowing it to enter the institutional customer space and cross sell its other products.

“This acquisition allows us 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,” Panajon said.

AlphaPrimus Advisors acted as financial advisor to Macay Holdings for this transaction. Picazo Buyco Tan Fider & Santos acted as legal counsel for Macay.