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.

Mexican Coca Cola bottler Femsa acquires Coca Cola bottling unit in Philippines for $689m

Coca-Cola Femsa SAB de CV (MXK:KOFL), the bottler of Coca Cola in Mexico, said on Friday it would pay USD688.5m (EUR525.3m) in cash to buy 51% in The Coca-Cola Company’s (NYSE:KO) bottling unit in the Philippines.

The deal, which allows Coca-Cola Femsa to expand beyond Latin America, gives the buyer the option to purchase the remaining 49% in Coca-Cola Bottlers Philippines Inc (CCBPI) at any time within the next six years.

Coca-Cola Femsa will increase its exposure to fast-growing emerging economies with this acquisition, expecting profitable growth and long-term returns in these economies, it said.

The transaction, reflecting an enterprise value of USD1.35bn for CCBPI, is seen to wrap up in early 2013.

CCBPI runs 23 production plants, serving nearly 800,000 customers and is expected to sell some 530m unit cases of beverages in 2012.

The buyer’s advisors include Allen & Company LLC, Rothschild, Cleary, Gottlieb, Steen & Hamilton LLP and SyCip Salazar Hernandez & Gatmaitan.