Home-grown Macay Holdings Inc. has acquired full ownership of American softdrinks maker RC Global Beverages Inc. which owns the rights to the RC Cola brand globally.

Under the agreement, Macay is paying $21 million in equity value and assuming net debts of $25 million for an equivalent consideration of P23 billion. There will also be a purchase price adjustment depending on RCGBI's net earnings performance for the year 2022.

Macay said in a statement that RGBI has the ability to grant bottling and distribution licenses to companies in the continents of Asia, Europe, Africa, the Middle East, and in North and South America, except for the US.

RCGBI also has existing relationships with 32 bottlers in 49 countries including the Philippines.

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

Positive development

Macay president Antonio Panajon expressed his optimism at this newest acquisition.

"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," Panajon indicated.

Macay acquired Kitchen City in 2020 that allowed the company 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 company said.

"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," he added.

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