The SSI Group Inc., a prominent player in the Philippines' retail industry and the official distributor of several luxury international brands, has announced the acquisition of a majority stake in Rustan Marketing Corp. (RMK) for P232 million. This move marks a significant expansion of SSI's footprint in multi-channel retail distribution, allowing the group to broaden its reach across various retail platforms.

In a regulatory filing, SSI revealed that its subsidiary, Stores Specialists Inc. (SSI), has successfully acquired a 99.44 percent stake in RMK. This strategic acquisition allows SSI to diversify and strengthen its presence across specialty stores, department stores, supermarkets, and e-commerce platforms. By acquiring RMK, SSI can now provide its brand partners access to a wider array of retail channels, enhancing its distribution capacity across the Philippines.

Deal highlights and reach

Founded in 1964, RMK has become one of the country’s largest wholesale distributors, specializing in global brands across various categories, including fragrances, beauty, fashion, footwear, luggage, home and lifestyle products. RMK's portfolio includes well-known international brands like Samsonite, American Tourister, Tefal, Lacoste Fragrances, Maison Margiela, Spanx, OPI Nail Polish, and Nine West.

The acquisition is expected to strengthen SSI’s already formidable retail presence. SSI, which currently manages a portfolio of 96 brands and operates 565 stores across the country, will benefit significantly from RMK’s established wholesale network. The combined entities will be able to offer a more comprehensive distribution system, covering more than 1,300 outlets and major e-commerce platforms nationwide.

RMK, under the leadership of the Tantoco family, posted impressive financial results in 2024. The company reported P1.085 billion in revenues, with an EBITDA of P111.2 million and a net income of P44.2 million. The deal also includes a requirement for RMK’s selling shareholders to inject P232.08 million into the company, further solidifying its financial foundation.

SSI president and CEO Anton Huang has expressed confidence that the acquisition will allow the group to expand its portfolio in 2025, potentially offering up to seven new brands. As the Philippines' consumption-driven economy continues to grow, SSI aims to capitalize on the increasing demand for premium and luxury products.

The acquisition also aligns with SSI's vision of becoming a multi-channel distributor of premium brands nationwide. The group is committed to offering a variety of lifestyle choices to Filipino consumers, responding to evolving tastes and preferences. With a strong retail presence, including 111,816 sqm. of gross selling area, SSI is positioning itself at the forefront of the retail industry.

Huang added that SSI’s goal is to continue bringing global lifestyle trends to Filipino consumers, providing them with access to a broad range of luxury, casual, and fast fashion products. The acquisition of RMK will also contribute to the group’s efforts to enhance its online retail presence, meeting the growing demand for e-commerce in the Philippines.

Honoring RMK’s roots

The Tantoco family's deep roots in the Philippine retail industry have been instrumental in shaping the success of both SSI and RMK. Over the years, the family has nurtured a strong reputation for delivering premium products to the local market, and this acquisition underscores their ongoing commitment to expanding their retail footprint.

With the integration of RMK, SSI Group is poised for even greater success in the future, with enhanced distribution capabilities and an expanded portfolio of global brands that will cater to the diverse needs of Filipino consumers. The acquisition reflects SSI’s strategy of continuous growth and expansion, which has seen the group return to expansion mode in recent years, following a 7.4 percent increase in its gross selling area in 2023.

As SSI continues to broaden its influence in the retail sector, the acquisition of Rustan Marketing Corp. is a significant step toward becoming a comprehensive, multi-channel distributor of premier global brands in the Philippines. With its increased reach and a wider array of retail channels, SSI is well-positioned to remain a key player in the ever-evolving Philippine retail landscape.