Coca-Cola Femsa SAB de CV (MXK:KOFL), the bottler of Coca Cola in Mexico, said it would take over Brazilian Companhia Fluminense de Refrigerantes for an enterprise value of USD448m (EUR344m).
Companhia Fluminense, set up 64 years ago, produces and distributes soft drinks licensed from The Coca-Cola Company (NYSE:KO), as well as beer.
The deal, cleared by Coca-Cola FEMSA’s board, needs approval from the Brazilian antitrust authority and The Coca-Cola Company, the buyer said.
The move, in line with Coca-Cola FEMSA’s plan to focus on opportunities on the Latin American Coca-Cola bottling system sector, adds to the buyer’s footprint in the strategically important Brazilian market, allowing for significant synergies to be achieved, it said.
The Companhia Fluminense franchise, with 2,000 employees at one bottling facility and four distribution centres, covers parts of Brazilian states Minas Gerais, Rio de Janeiro and Sao Paulo serving 141 cities. It generated net revenues of some USD232m in the year to 31 March 2013.