Yao’s Macay gains global operations of RC Cola after P2.5-B takeover

Tycoon Alfredo Yao’s Macay Holdings Inc., one of the country’s top soft drink makers, completed the P2.5-billion takeover of the global operator of RC Cola, giving the former distribution and bottling rights in over 100 countries.

Macay, which sells RC Cola in the Philippines, announced the signing of the share purchase agreement to buy RC Global Beverages Inc. in September last year.

It said in a stock exchange filing the buyout was concluded on Jan. 17, 2023 after the execution of the instrument of transfer and the fulfillment of agreed closing conditions.

Macay, a Philippine-listed company with a market value of P7.2 billion, said the acquisition would strengthen its food and beverage portfolio while diversifying its business via “foreign currency revenues in addition to the current peso revenues from its local operations.”

“It also provides geographic and political/country risk diversification to Macay,” the company said in the filing.

RC Global Beverages holds the global licensing rights to RC Cola, a soda brand founded in the United States in 1905—two decades after beverage giant The Coca-Cola Co. sold its first carbonated drink. It has access to over 100 global markets, excluding the United States, Mexico and Canada.

It also develops flavors and provides concentrates for customers in different countries, the filing showed. Macay said it paid $21.4 million and would assume a net debt of $25 million.

“The acquisition is also immediately financially accretive to Macay and will strengthen the food and beverage investments portfolio of Macay,” the company said.

RC Global Beverages saw revenues in 2021 surge 115 percent to $8.24 million while sales rose 7 percent to $23.37 million, the disclosure showed.

“In addition to providing geographic and political/country risk diversification to Macay, this acquisition will enhance synergies between Macay, Philippine bottler of RC Cola, and [RC Global Beverages], as trademark owner and supplier of concentrates,” the disclosure read.