SSI takes over Rustan’s in P232-M deal

Photo from Rustan’s official website

MANILA, Philippines — Tantoco family-led SSI Group Inc., the official distributor of several international luxury brands in the country, is expanding its presence in the industry after a P232-million buyout of Rustan Marketing Corp. (RMK).

SSI on Friday said its board of directors had approved subsidiary Stores Specialists Inc.’s acquisition of a 99.44-percent stake in RMK.

“SSI’s acquisition of RMK will allow [the group] to become a listed multichannel distributor of premiere brands in the Philippines,” SSI said in a regulatory filing.

“The acquisition ensures that [the group] is able to offer brand partners distribution across a spectrum of retail channels, from specialty stores to wholesale distribution through third-party department stores and supermarkets,” it added.

Also owned by the Tantoco family, the 61-year-old RMK currently has a network of 1,300 wholesale outlets carrying global fragrance, beauty, fashion, footwear, home and lifestyle brands.

Portfolio

These include Samsonite, Tefal (cookware), Lacoste (fragrances), Maison Margiela (fragrances), OPI (nail polish) and Nine West (footwear).

Last year, RMK’s net income was at P44.2 million, while revenues reached P1.1 billion, according to SSI.

SSI president and CEO Anton Huang told the Inquirer last year they may offer up to seven new brands in 2025, banking on the country’s consumption-driven economy to fuel growth.

READ: BIZ BUZZ: No retail Armageddon here: New fashion brands coming

Huang confirmed that premium fashion brands Alice + Olivia and Sandro Maje would be available in the country this year, although the company was also hoping to bring in up to three new food and beverage brands.

Expansion mode

SSI returned to expansion mode in 2023, with its gross selling area expanding by 7.4 percent to 108,678 square meters compared with the contraction seen in the previous two years.

“The taste of Filipino consumers continues to evolve and there are always new offerings that come out globally, and we’ve always made it a point to be at the forefront of bringing lifestyle choices to Filipino consumers,” Huang said.