Philippine Macay acquires catering provider Kitchen City
Philippine-listed investment holding company Macay Holdings Inc. has acquired Artemisplus Express, operator of the canteen concessionaire Kitchen City, for 2 billion pesos ($41 million) in an all-cash deal, according to a disclosure. As part of the deal, Macay will acquire 100% voting and controlling interest in Artemisplus.
Strategic Entry into Food-Service Business
The acquisition of Kitchen City will be Macay’s first foray into the food-service business as it seeks to expand its business portfolio to other consumer products and services in the Philippines and other Asian countries. In the financial sector, Macay reported net income after tax of 130 million pesos in the second quarter of the year on gross revenue of 2.6 billion pesos.
Key Transaction and Operational Metrics
- Total Investment: 2 billion pesos ($41 million) in an all-cash deal.
- Interest Acquired: 100% voting and controlling interest.
- Service Volume: Serves over 100,000 meals per day.
- Workforce: 1,300 employees.
- Current Scale: 90 outlets in Metro Manila.
Company Profile and Operations
Kitchen City, operated by Artemisplus Express Inc., is the leading food solutions provider in the Philippines. The business started in 1999 as an operator of smaller canteens of electronics and manufacturing companies in South Luzon. Operating under the trade name Kitchen City, Artemisplus services clients mainly from business process outsourcing, corporate, manufacturing and hospital segments through canteen concessions. It also provides catering services and has recently ventured into the sale of packed and frozen meals.
Additionally, Macay is the investment holding company of Yao Group of Companies, which is led by businessman Alfredo Yao. Macay is the parent company of ARC Refreshments that is engaged in the bottling, distribution, marketing and sales of RC Cola and other popular carbonated drinks in the Philippines.
Future Expansion and Corporate Synergies
The company said it will expand Kitchen City from the current 90 outlets in Metro Manila and capitalize on potential synergies with ARC Refreshments Corporation, (bottler of RC Cola, Juicy Lemon, Fruit Soda Orange, Seetrus, Arcy’s Rootbeer and Rite ‘n Lite) and the rest of the Yao Group of Companies.
