Mexican Coca Cola bottler Femsa acquires Brazil’s Coca-Cola Company distributor in $448m deal

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.

Merged Italian transport groups Atlantia, Gemina to bid for Brazilian airports

The new group formed from the merger of Italian motorway group Atlantia SpA (BIT:ATL) and airport operator Gemina SpA (BIT:GEM) will consider making bids for Brazilian airports in Belo Horizonte and Rio de Janeiro, Atlantia’s CEO Giovanni Castellucci told a conference call.

The statement was made after the boards of directors of both companies approved earlier a plan to combine their operations via an all-stock deal, in a move to create a global leader in the motorway and airport infrastructure sector.

Speaking at a conference call, Castellucci said that the new entity would continue investing some EUR100m (USD130.2m) to EUR200m a year in its international growth. He also explained that Atlantia had decided to combine its operations with Gemina mainly because the move would support the growth of the Rome airport hub of Fiumicino in the medium to long term. Fiumicino is owned by Aeroporti di Roma SpA (ADR), the airport operator of Rome’s airports which is controlled by Gemina.

The tie-up deal is subject to approval by both companies’ shareholders and regulatory clearance, among other conditions, and is expected to be completed by the end of 2013.

Dutch TNT Express seeks buyers for Brazilian and Chinese operations

Netherlands-based TNT Express NV (AMS:TNT) is looking at divestment opportunities for its operations in Brazil and China, the express delivery company’s interim CEO Bernard Bot said in a financial results statement on Monday.

The executive noted that the outcome for the Chinese activities will soon be determined.

The company reported a fourth-quarter net loss of EUR148m (USD197.5m) a few weeks after the European Commission (EC) banned the USD7bn (EUR5.2bn) tie-up with US package delivery group United Parcel Service Inc (NYSE:UPS).

Bot stressed there are many positive options through which the company may bolster its profitability. A full update will be made on 25 March 2013, he added.

Citigroup seeks buyers for Brazilian credit card and consumer finance unit

US financial services group Citigroup Inc (NYSE:C) is looking to divest the Credicard consumer finance unit of its Brazilian business as part of a plan to concentrate on its strongest operations, the Valor Economico newspaper said today without citing sources.

According to the report, Citigroup has opened a data room to possible suitors with preliminary information about the unit. Credicard, with some 7m clients, could draw interest from some of Brazil’s biggest players including Banco PanAmericano SA (SAO:BPNM4), part of Banco BTG Pactual SA, Valor said, adding that a price tag had not been determined yet.

A public relations executive for Citigroup refused to comment on market speculation, when contacted by Reuters.

Recently, Valor cited Citigroup’s chief country officer Helio Magalhaes as saying in an interview that the group did not plan to sell Credicard.

UK security firm G4S strengthens Brazilian position with Vanguarda deal

UK security solutions group G4S Plc (LON:GFS) said on Tuesday its Brazilian unit SSE DO Brasil Ltda had taken over local peer Vanguarda Seguranca e Vigilancia Ltda from its founders and certain directors.

By acquiring this firm, G4S sticks to its strategy to focus on markets and sectors where security and safety are important considerations, it said. The company noted that its operations in developing markets account for about 31% of its total revenues and added it aims to begin recording 50% of the group total from such markets by 2019.

Sao Paulo-based Vanguarda offers security personnel and systems along with monitoring services and mobile patrols to the banking, transportation, commercial buildings, education, health and public services sectors. The company was founded in 1975 and currently has gross assets of GBP29m (USD47m/EUR36m).

Its acquisition comes after G4S’ takeover of Brazilian unarmed security and facilities services provider Interativa Service Ltda in December 2011, also from its founders and other directors. This firm has gross assets of GBP18m and serves the education, transportation, financial institutions, healthcare, public services and other sectors in the country.

G4S did not reveal the exact sum it paid for any of the two deals but said the combined consideration is in line with the group’s normal multiple of eight to ten times the target’s current year EBITDA. The two Brazilian companies’ combined revenue amounts to around GBP165m, which makes the UK party leader in both the security and facilities management markets in Brazil, it added.

US food group General Mills completes acquisition of Brazil’s Yoki

US food company General Mills Inc (NYSE:GIS) said it had finalised its deal to acquire Brazilian sector player Yoki Alimentos SA.

The definitive purchase agreement was unveiled on 24 May 2012 but the financial parameters of the transaction remained undisclosed. Sean Walker, president of General Mills’ Latin American operations, described the closure of the acquisition as a new start for the company’s Brazilian business.

General Mills has expanded its portfolio with brands that have been favourites of Brazilian households for decades. As a result of this acquisition, General Mills will be able to accelerate its growth in the vibrant Brazilian market, Walker added.

Walker, who also runs General Mills Brazil, will be put in charge of Yoki. He will be assisted by a management team comprising key executives from both companies.

Yoki was established in 1960 by Yoshizo Kitano and currently sells over 600 products across the country under nine brands. The food products marketed under its Yoki and Kitano brands have secured leading market positions in categories such as snacks, convenient meals, basic foods and seasonings.

The company has multiple production facilities and a national retail distribution network. In 2011, it booked revenues of BRL1.1bn (USD539.4m/EUR438.5m) on an IFRS basis.

London-listed Sage enters Brazilian market with £125m acquisition of Folhamatic

British business management software firm Sage Group Plc (LON:SGE) unveiled on Wednesday its entrance into the Brazilian market through the GBP125m (USD197m/EUR155m) acquisition of a 75% stake in local accounting, tax and payroll and regulatory content software developer Folhamatic Group.

The price for the stake gives Folhamatic a total enterprise value of GBP191m, the buyer said, adding that the deal was in line with its plans to growth through building a presence in important emerging markets.

Folhamatic is a top player in the growing small and medium-sized enterprise (SME) market in Brazil, leading the accounting firm sector with some 13,000 accounting firms and around 46,000 businesses as clients.

Its addition is a great complement to Sage’s strategy and business model, with the combination between its customer base and Sage’s technologies, products and best practice expected to ensure further growth. Sage also expects the acquisition to immediately contribute to its earnings, it said.

Folhamatic’s founder and CEO Mauricio Frizzarin will keep the other 25% in the company, while put and call arrangements exercisable by either party in 2015 have been agreed, the buyer said.

Vendors include Fund VII FIP – Fundo de Investimento em Participacoes, Gilberto Caiuby Fischel, Rony Blinder, Mauricio Frizzarin and Insight Venture Partners funds.

Completion is expected in June.

Sage used the advisory services of Citigroup Global Markets Limited.

Folhamatic had revenues of GBP42.4m, EBITDA of GBP6.8m and EBITA of GBO6.5m last year. It is expected to boost its 2012 revenues to GBP48.8m, EBITDA to GBP14.2m and EBITA to GBP13.9m, the buyer said.

At 31 December 2011, its gross assets stood at GBP79.2m.