Coca-Cola FEMSA Signs a Definitive Agreement to Acquire 51% of

Coca-Cola FEMSA Signs a Definitive Agreement to Acquire 51% of The
Coca-Cola Company's Philippines' Bottling Operation 
MEXICO CITY -- (Marketwire) -- 12/14/12 --  Coca-Cola FEMSA, S.A.B.
de C.V. (BMV: KOFL) (NYSE: KOF), the largest franchise bottler of
Coca-Cola products in the world, and The Coca-Cola Company (NYSE:
KO), the world's largest beverage company, have signed a definitive
agreement for Coca-Cola FEMSA to acquire 51% of Coca-Cola Bottlers
Philippines, Inc. (CCBPI) for an amount of US$688.5 million in an
all-cash transaction. 
This purchase price represents an aggregate enterprise value for 100%
of the bottler of US$1,350 million which results in a 2012 projected
EBITDA multiple of approximately 13.5 times. As part of the
agreement, Coca-Cola FEMSA will have an option to acquire the
remaining 49% of CCBPI at any time during the seven years following
the closing and will have a put option to sell its ownership to The
Coca-Cola Company any time during year six. The transaction is
expected to close in early 2013. 
The Philippines' market represents an expansion of Coca-Cola FEMSA's
bottling footprint beyond Latin America, reinforcing its exposure to
fast growing economies and its commitment to The Coca-Cola System.
The Philippines has one of the highest per capita consumption rates
of Coca-Cola products in the region and presents significant
opportunities for further growth. Coca-Cola FEMSA believes that by
leveraging its proven expertise and operating capabilities in an
economy with vibrant growth prospects and an attractive
socio-economic and demographic profile it will be capable to capture
the opportunities and further improve the bottler's operations and
financial results. 
"Today we are pleased to announce another important milestone in the
history of our group and the relationship with our partner, The
Coca-Cola Company," said Jose Antonio Fernandez Carbajal, Chairman of
the Board of Directors of Coca-Cola FEMSA. "We see profitable growth
prospects and long-term returns in emerging market economies. We
welcome the unique opportunity to learn and share new capabilities to
grow as an integrated company, as professionals, and as men and women
together with our communities. Our principles and values share a
common ground
 with the Filipino community and we are certain that
together we can extend FEMSA's long-lasting commitment to the
continuous creation of economic, social and environmental value in
every community where we operate." 
"This announcement reflects our long-standing belief in the global
franchise system and our continued commitment to innovation and
growth in the Philippines, just as we have done over the last 100
years," said Muhtar Kent, Chairman and CEO, The Coca-Cola Company.
"Our brands and our business have very deep roots in the Philippines,
and we look forward to working with our strong partners at Coca-Cola
FEMSA to capture future opportunities for growth and investment and
bring even more social and economic value to customers and
communities throughout the country." 
"Through this transaction, we strengthen our position in the global
beverage industry," said Carlos Salazar Lomelin, Chief Executive
Officer of Coca-Cola FEMSA. "This represents an important step in our
growth strategy and our commitment to The Coca-Cola System. We
embrace a growing family of employees that will continue to generate
value together, based on the foundation of our sustainable business
model. This transaction reinforces our commitment to identify avenues
of growth and value creation for our shareholders." 
The operations of CCBPI are comprised of 23 production plants, serve
close to 800,000 customers and are expected to sell approximately 530
million unit cases of beverages in 2012. Coca-Cola has been present
in the Philippines since the start of the 20th century and has been
locally produced since 1912. The Philippines received the first
Coca-Cola bottling and distribution franchise in Asia. 
Allen & Company LLC. and Rothschild acted as financial advisors and
Cleary, Gottlieb, Steen & Hamilton and SyCip Salazar Hernandez &
Gatmaitan acted as legal advisors to Coca-Cola FEMSA on this
For additional relevant information, please refer to the presentation
regarding the Philippines transaction, which is available on the
Investor Relations section of our website 
 We invite you to participate in the conference call
to discuss the transaction, which will be held on Friday, December
14, 2012, at 12:00 P.M. Eastern Time / 11:00 A.M. Mexico City Time /
01:00 A.M. Manila Time (December 15, 2012 in Manila). 
The speakers on this call will be:
 Carlos Salazar, Chief Executive
Officer of Coca-Cola FEMSA and
 Hector Trevino, Chief Financial
Officer of Coca-Cola FEMSA 
To participate in the conference call, please dial: Domestic U.S.:
800-573-4840 or International: 617-224-4326. We invite investors to
listen to the live audio cast of the conference call on the Company's
If you are unable to participate live, an instant replay of the
conference call will be available through Thursday, December 20,
2012. To listen to the replay, please dial: Domestic U.S.:
888-286-8010 or International: 617-801-6888. Pass code: 90452105. 
Coca-Cola FEMSA, S.A.B. de C.V. produces and distributes Coca-Cola,
Fanta, Sprite, Del Valle, and other trademark beverages of The
Coca-Cola Company in Mexico (a substantial part of central Mexico,
including Mexico City, as well as southeast and northeast Mexico),
Guatemala (Guatemala City and surrounding areas), Nicaragua
(nationwide), Costa Rica (nationwide), Panama (nationwide), Colombia
(most of the country), Venezuela (nationwide), Brazil (greater Sao
Paulo, Campinas, Santos, the state of Mato Grosso do Sul, part of the
state of Goias, and part of the state of Minas Gerais), Argentina
(federal capital of Buenos Aires and surrounding areas) and the
Philippines (nationwide), along with bottled water, juices, teas,
isotonics, beer, and other beverages in some of these territories.
The Company has 60 bottling facilities and serves more than 2,500,000
retailers with more than 100,000 employees worldwide. 
For Further Information: 
Investor Relations 
Jose Castro
(5255) 5081-5120 / 5121 
Roland Karig 
(5255) 5081-5186 
Carlos Uribe
(5255) 5081-5148 
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