BRAZIL: Coca-Cola FEMSA set for US$448m Companhia Fluminense de Refrigerantes buy
Coca-Cola FEMSA has made a number of acquisitions over the past two years
Coca-Cola FEMSA has agreed its sixth acquisition in two years with the US$448m purchase of Brazilian beverage maker Companhia Fluminense de Refrigerantes.
The deal, which is subject to approval of Brazil's anti-trust authorities, will give FEMSA control over Companhia Fluminense's bottling plant and four distribution centres, FEMSA said on Friday (28 June). The company mainly sells sparkling drinks but also makes beer and still beverages, serving 4.5m customers.
“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,” FEMSA chief executive Carlos Salazar Lomelín said.
In May, FEMSA completed its takeover of Mexican bottler Grupo Yoli, while in December it agreed to buy a bottler in the Philippines, its first acquisition outside of Latin America.
Following the announcement, one analyst said the price FEMSA is paying for Companhia Fluminense “looks a tad higher” than recent acquisitions in Mexico, but added that the deal “should be well received by investors”.
Companhia Fluminense is a profitable business that will connect FEMSA's operations in Sao Paulo and Minas Gerais, JP Morgan's Alan Alanis said. “We see the acquisition as sound from a strategic, synergistic and accretive standpoint,” Alanis said.
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