Arca Continental Strengthens Its Snack Business with Two Landmark
*Arca Continental announces the acquisitions of snack food companies Wise
Foods in the United States and Inalecsa in Ecuador, both with traditional
and well-known brands
*These operations strengthen the profitable growth and value creation
opportunities of its snack business
MONTERREY, Mexico -- December 17, 2012
Arca Continental, S.A.B. de C.V. (BMV: AC) (“the Company” or “Arca
Continental”), the second-largest Coca-Cola bottler in Mexico and Latin
America announced today the acquisitions of snack food companies Wise Foods
(“Wise”), headquartered in Pennsylvania, and Industrias Alimenticias
Ecuatorianas (“Inalecsa”) based in Ecuador. Terms of the transactions were not
Wise Foods was purchased from affiliates of New York-based private investment
firm Palladium Equity Partners, LLC that had acquired Wise in 2000. This
transaction is still subject to customary regulatory approvals, which are
expected to be obtained promptly.
Both Wise Foods and Inalecsa have well-recognized salty and sweet snack brands
in their respective markets.
The investment in this important sector strengthens the Company’s presence in
both regions and expands its snack business, which operates in Mexico under
the brand Bokados, the third-largest in the country.
The combination of these two companies with our current snack operations will
result in net sales of close to US$ 400 million in 2013.
“The integration of Wise Foods and Inalecsa reinforces our confidence in this
segment of the snack industry as an important vehicle for creating value for
our shareholders, in areas that are highly complementary to our core
business,” stated Manuel L. Barragan Morales, Chairman of the Board of
Directors of Arca Continental.
“These transactions also increase our Company’s presence and competitiveness
in both markets, thereby enabling us to develop new growth opportunities in
the territories we serve. Both provide a solid platform that will bring
innovation to our portfolio, product and brand expansion as well as beneficial
synergies and the sharing of best practices,” said Francisco Garza-Egloff,
Chief Executive Officer of Arca Continental.
Over its 90-year history, Wise Foods is a pioneer in the potato chip and salty
snack segments and has enjoyed excellent consumer loyalty, allowing it to
compete successfully with larger national snack companies.
Wise is a leading regional salty snack brand with strong core market and
national expansion potential. The company has a particularly strong presence
in the New York Metropolitan market where Wise is the #1 regional brand and #2
Wise Foods is headquartered and performs manufacturing activities in Berwick,
Pennsylvania. Products are distributed via a system of independent
distributors and five company-owned distributor branches. It has approximately
850 employees and produces nearly 40,000 tons per year. Seale & Associates
acted as financial advisor for this transaction.
The acquisition of Wise will greatly expand Arca Continental’s current
operations and strengthen marketing capabilities in its related businesses in
the U.S., where the Company has been operating for over 25 years, primarily in
Texas and California, through its affiliate Interex.
On the other hand, Inalecsa started operations in Ecuador in 1972 and is a
leading company in its industry, with a wide national footprint as well as
exports to Europe. The company is known for its salty, sweet and savory
snacks, with leading brands such as Inacake, Tigreton, Tortolines, Riskos and
Inalecsa has two production centers in Guayaquil and Quito, with over 400
employees that produce close to 8,000 tons of products per year. HSBC acted as
financial advisor in this transaction.
Arca Continental is committed to creating value within all the communities in
which it operates, backed by the professionalism of its team members and the
values of its corporate culture.
US Media Contact:
i-advize Corporate Communications, Inc.
Tel: (917) 797-7600
About Arca Continental
Arca Continental produces, distributes and sells non-alcoholic beverages under
The Coca-Cola Company brand. Arca Continental was formed in 2011 through the
merger of Embotelladoras Arca and Grupo Continental, making it the
second-largest Coca-Cola bottler in Latin America and one of the largest in
the world. Headquartered in Monterrey, the Company serves more than 53 million
consumers in Northern and Western Mexico, Ecuador and Northern Argentina. Arca
Continental also produces and distributes Bokados brand snack foods. The
Company's shares trade on the Mexican Stock Exchange under the ticker symbol
"AC". For more information, visit www.arcacontal.com
Ulises Fernández de Lara, 52 (81) 8151-1525
Juan Hawach Sánchez, 52 (81) 8151-1547
i-advize Corporate Communications
Melanie Carpenter, 212-406-3692
Guillermo Garza, 52 (81) 8151-1589
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