MANILA, Philippines — Macay Holdings Inc., the parent company of ARC Refreshments Corp., has acquired Kitchen City, a leading canteen concessionaire in the country.
In a disclosure to the Philippine Stock Exchange, Macay said it entered into an agreement to acquire 100 percent of Artemisplus Express Inc., operator of the canteen concessionaire which services clients mainly from the business process outsourcing, corporate, manufacturing and hospital segments.
The move marks Macay’s foray into the food service business and expands its business portfolio to other consumer products and services in the Philippines and in other Asian countries.
“Our priority is to accelerate the growth of Kitchen City and support the company’s vision to provide high-quality but affordable meals to its clients which mirrors Macay’s mission to provide superior value for its customers in the Philippines,” Macay said yesterday.
The deal, valued at P2 billion, is expected to close not earlier than one month from execution of the agreement and subject to closing conditions.
The valuation was based on discounted cash flow analysis with the agreed purchase price of the transaction based on negotiations between the parties.
“The acquisition of Kitchen City provides Macay the opportunity to diversify into the food service space and acquiring not only a market leader in cafeteria operations but the potential to expand beyond the existing 90 outlets it primarily services in Metro Manila,” Macay said.
After the acquisition, Macay plans to accelerate the growth of Kitchen City and to capitalize on potential synergies with ARC Refreshments Corp., the bottler of RC Cola, Juicy Lemon, Fruit Soda Orange, Seetrus, Arcy’s Rootbeer and Rite ‘n Lite, as well as the rest of the Yao Group of Companies.