Coca-Cola FEMSA is set to boost its volumes in Brazil by around 40% with the takeover of independent bottler Spaipa Industria Brasileira de Bebidas.
FEMSA's board has approved the all-cash deal, valued at US$1.86bn, but await approval from Brazil's anti-trust authorities, the Mexico-based Coca-Coca bottler said on Saturday (31 August). FEMSA said it will also seek approval from the Coca-Cola Co.
Spaipa is the second-largest privately owned bottler in the Brazilian Coca-Cola system and operates out of southern Brazilian states São Paulo and Paraná, with four bottling facilities and seven distribution centres. Last year, Spaipa sold 236m unit cases, generating net revenues of about US$929m. Its acquisition will boost FEMSA volumes in Brazil by 40% and allow it to reach 39% of the Coca-Cola system's volume in the country, the company said.
“Despite the challenges that exist in the short-term market conditions, our long-term view is consistent with the momentum that we have built over a decade of operating in this country (Brazil),” FEMSA chairman José Antonio Fernández Carbajal said.
The deal follows FEMSA's agreement in July to buy Brazilian beverage maker Companhia Fluminense de Refrigerantes.
Sectors: Emerging markets – BRIC, Soft drinks
Companies: Fomento Economico Mexicano, The Coca-Cola Company
