Macay Holdings, Inc. (MACAY) is acquiring 100 percent of RC Global Beverages, Inc. (RCGBI), which owns the rights to the RC Cola brand globally, at a total cost of about $46 million.

In a disclosure to the Philippine Stock Exchange, Macay said its Board of Directors has approved the proposed acquisition of RCGBI subject to the finalization of a share purchase agreement and other closing conditions.

As owner of the RC Cola brand, RCGBI has the ability to grant bottling and distribution licenses to bottlers in the continents of Asia, Europe, Africa, the Middle East, and in North and South America, except for the US.

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

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

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,” he said.

Panajon added that, “We acquired Kitchen City in 2020 and that allowed us to enter the institutional customer space and cross sell our other products.” “This acquisition allows us to expand geographically and provide diversification and increased opportunities,” he said.

He noted that, “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."

Macay owns ARC Refreshments Corporation (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, Inc. MACAY, through ARC, operates nine production facilities in various locations throughout the country.