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Mexico’s Coca-Cola Femsa Buys Brazil’s Spaipa for $1.86 Billion

Coca-Cola Femsa SAB (KOFL), the largest bottler of the soft drink in Latin America, agreed to buy Brazil’s Spaipa SA Industria Brasileira de Bebidas in a cash deal with a total transaction value of $1.86 billion.

The deal, Coca-Cola Femsa’s second acquisition in Brazil in three months, will bolster its volume in South America’s largest nation by 40 percent, the Mexico City-based bottler said in a statement today. When the purchase closes, pending approval by the Brazilian antitrust authority, the Mexican bottler said it would account for 39 percent of the Coca-Cola system’s volume in Brazil.

The Spaipa deal is Coca-Cola Femsa’s largest since its 2002 acquisition of Miami-based Panamerican Beverages Inc., or Panamco, according to data compiled by Bloomberg, and it comes on the heels of a $4 billion shopping spree in Mexico, Brazil and the Philippines since June 2011. The Spaipa footprint provides a “perfect geographic fit,” Femsa said in the statement, linking Coca-Cola Femsa’s distribution territories in the states of Sao Paulo and Mato Grosso do Sul.

“Since the acquisition of Panamco 10 years ago our team continues strengthening our leading position in the system in Brazil, while consistently increasing the profitability of this territory,” Coca-Cola Femsa Chairman Jose Antonio Fernandez Carbajal said in the statement.

To contact the reporter on this story: Brendan Case in Mexico City at bcase4@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net

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