Coca-Cola FEMSA to buy Brazilian coke bottler Spaipa for $1.855bn
Coca-Cola FEMSA, a Mexican bottler of Coca-Cola products, has signed an agreement to purchase 100% stake in Brazilian coke bottler Spaipa Industria Brasileira de Bebidas for $1.855bn in an all-cash transaction.
This acquisition will enable FEMSA to increase its volume by 40% in Brazil, which represents a 39% of the Coca-Cola system's volume in the country.
Spaipa operates in more than half of Mato Grosso do Sul and São Paulo states with four bottling facilities and seven distribution centers and links Femsa's operations in these areas.
The deal is subject to the approval of the Brazilian antitrust authority Conselho Administrativo de Defesa Econòmica and The Coca-Cola.
Coca-Cola FEMSA chief executive officer Carlos Salazar Lomelín said that they continue to create a robust platform in Brazil with the acquisition of the second largest privately owned bottler in the system, operating in one of the regions with the highest GDP per capita in the country.
"We are privileged to serve as many consumers in Brazil as we do in Mexico, and our company will benefit from the talented and experienced employees of the Spaipa franchise," Salazar added.
"Building on our operating capabilities and solid financial position, we are confident that our company will be able to deleverage our balance sheet in a short period of time."