Coca-Cola FEMSA Reaches an Agreement to Acquire Companhia Fluminense de
Refrigerantes in Brazil
MEXICO CITY -- (Marketwired) -- 06/28/13 -- Coca-Cola FEMSA, S.A.B.
de C.V. (BMV: KOFL) (NYSE: KOF) ("Coca-Cola FEMSA" or the "Company"),
the largest public bottler of Coca-Cola products in the world,
announces that it has reached an agreement to acquire 100% of
Companhia Fluminense de Refrigerantes ("Companhia Fluminense") in an
all-cash transaction. During the last twelve months ended March 31,
2013, Companhia Fluminense sold 56.6 million unit cases of beverages,
including beer, generating approximately US$ 232 million in net
The agreement has been approved by Coca-Cola FEMSA's Board of
Directors and is subject to the approval of the Conselho
Administrativo de Defesa Economica, the Brazilian antitrust
authority. Coca-Cola FEMSA will also seek the approval of The
Coca-Cola Company on this transaction.
The aggregate Enterprise Value of this transaction is USD$448 million
and Companhia Fluminense's estimated pro forma consolidated EBITDA of
the last twelve months ended March 31, 2013 was USD$ 40 million.
"This transaction underscores our commitment to continue focusing on
the opportunities that the Latin American Coca-Cola bottling system
presents. This acquisition highlights the long-term strategic
importance of the Brazilian market for Coca-Cola FEMSA as we believe
in the attractive domestic consumption prospects and socio-economic
dynamics. This franchise represents an important link between our Sao
Paulo and Minas Gerais footprint, setting the stage for important
synergies to be captured from the geographic contiguity of our
territories and the reconfiguration of the supply chain of our
combined operations. Our growing family of employees will continue to
work to capitalize on the opportunities that the beverage industry
presents to us in our markets," said Carlos Salazar Lomelin, Chief
Executive Officer of the Company.
"As we maintain our focus on driving the growth of our businesses
through our passionate team of employees and managers, we also remain
keen and alert to capture strategic opportunities where we can
leverage the platform and the capabilities we have developed over
time. We congratulate our team on this important transaction and
reiterate our belief that the very reason for our existence is to
create economic, social, and environmental value for all our
stakeholders and for the communities where we operate," said Jose
Antonio Fernandez Carbajal, President of the Board of Directors of
Companhia Fluminense was founded 64 years ago in the state of Rio de
Janeiro, when The Coca-Cola Company granted the first franchise
agreement to these territories in 1949. Companhia Fluminense has
presence in parts of the states of Minas Gerais, Rio de Janeiro and
Sao Paulo, where it serves 141 cities, including the city of Sao Jose
dos Campos, one of the most important industrial and research centers
in Latin America. This franchise operates 1 bottling facility and 4
distribution centers, with 2,000 employees serving 15,000 clients and
4.5 million consumers.
CONFERENCE CALL INFORMATION
We invite you to participate in the conference call to announce the
transaction, which will be held on Monday, July 1, 2013, at 11:00
A.M. Eastern Time (10:00 A.M. Mexico City Time).
The speakers on this call will be:
Mr. Carlos Salazar, Chief Executive Officer of Coca-Cola FEMSA; and
Mr. Hector Trevino, Chief Financial Officer of Coca-Cola FEMSA
To participate in the conference call, please dial: Domestic U.S.:
800-289-0463 or International: 913-981-5587; Participant passcode:
7391053. We invite investors to listen to the live audio cast of the
conference call on the Company's website, www.coca-colafemsa.com.
If you are unable to participate live, the conference call audio will
be available at www.coca-colafemsa.com.
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
Philippines (nationwide), along with bottled water, juices, teas,
isotonics, beer, and other beverages in some of these territories.
The Company has 62 bottling facilities and serves 317 million
consumers through close to 2,700,000 retailers with more than 100,000
Companhia Fluminense produces and distributes Coca-Cola, Fanta, Kuat,
Del Valle, and other trademark beverages of The Coca-Cola Company
serving 141 cities in parts of the states of Sao Paulo, Minas Gerais
and Rio de Janeiro. Companhia Fluminense was granted its first
Coca-Cola bottling franchise in 1949 and currently operates 1
bottling facility and 4 distribution centers, with 2,000 employees
serving 15,000 clients and 4.5 million consumers.
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