Alfred Yao buys RC Cola global for $46M

Alfred Yao

Macay Holdings, the investment holding firm of Zest-O owner and founder Alfred Yao, is taking over RC Global Beverages (RCGBI), which owns the rights to the RC Cola brand globally, for $46 million.

In a stock exchange filing, Macay said its board approved the acquisition of 100 percent of RCGBI, which has the authority to grant bottling and distribution licenses in Asia, Europe, Africa, Middle East, and in North and South America, except for the US.

Macay president Antonio Panajon said the deal, which is subject to the finalization of a share purchase agreement and other closing conditions, was in line with the company’s efforts to expand its presence in the highly competitive food and beverage industry.

“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 said.

Under the agreement, Macay will pay cash for $21 million in equity value and assume net debt of $25 million.

Macay said there would be a purchase price adjustment depending on RCGBI’s net earnings performance this year.

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 its product offerings and offshore partnerships.

RCGBI has existing ties to 32 bottlers in 49 countries (including the Philippines).

Macay owns ARC Refreshments Corp. (ARC), which is engaged in the business of trading of goods such as beverages on wholesale basis and to operate and maintain the business of bottling, distribution, marketing and sales of RC Cola and other carbonated soft drinks.

ARC is also engaged in toll manufacturing and bottling “Extra Joss” for Asiawide Kalbe Philippines.

https://bilyonaryo.com/2022/09/07/alfred-yao-buys-rc-cola-global-for-46m/