THE Keepers Holdings Inc. is acquiring a 50-percent stake in Cervia Global Trading Inc., the company behind liquor brand Sula, for P40 million.
“The acquisition of a 50 percent stake… gives The Keepers Holdings, Inc. a strategic entry point into the premium local spirits market while also positioning the company for growth in international markets,” the company told the stock exchange on Wednesday.
The transaction will be paid to Caesar Certeza, Mark Daniel Rivera, Vernon Carandang and Margherita Rauto, in exchange for their 125,000 shares in Cervia priced at P320 each.
Cervia is a domestic firm dedicated to creating and producing premium local alcoholic beverages — particularly liqueurs using Philippine-grown raw materials — for distribution in both the domestic and international markets.
The Keepers, which currently distributes a portfolio of imported spirits and wine brands such as Johnnie Walker, Jim Beam, and Jinro, said the acquisition of Cervia would complement its existing lineup.
The company said the price of the deal was based on Cervia’s revenue potential.
AP Securities research head Alfred Garcia said, “we see the potential here. Cervia’s Sula is a fairly niche brand, so getting acquired by [The Keepers] would widen its reach. It also slots quite well with [The Keepers’] current offerings of premium imported brands.”
In May, The Keepers approved a proposal to incorporate a subsidiary establishing a chain of retail outlets dedicated to alcoholic beverages and related products.
The company delivered a robust performance for the first quarter, with revenues rising 20.9 percent year on year to P4.06 billion. Net income rose 14.3 percent to P690 million.
The Keepers shares closed unchanged on Wednesday at P2.57 apiece.
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