Coca Cola Femsa Buys Yoli - Analyst Blog
January 21 2013 - 5:30AM
Zacks
Mexican bottler, Coca-Cola
FEMSA S.A.B. de C.V. (KOF) has entered into a definitive
agreement to acquire another Mexico-based Coca-Cola bottler Grupo
Yoli, S.A. de C.V. for $700 million.
Coca Cola Femsa will finance this transaction by issuing a net debt
of 1,009 million pesos. Moreover, Grupo Yoli will receive
approximately 42.4 million newly issued Coca Cola Femsa L series
shares at 184.0 pesos per share.
Grupo Yoli was founded in 1918 and is a Coke bottler since 1938.
The company sold about 99 million unit cases of beverages in
2012.
As part of the deal, Coca Cola Femsa will also get 10.14% stake in
Promotora Industrial Azucarera, and thus boost its holding in the
sugar producing company to 36.3%.
With this buyout, Coca Cola Femsa will get a strong foothold in the
southern states of Mexico and will also get a substantial 69,000
client base of Grupo Yoli in the region, including Acapulco and
Ixtapa Zihuatanejo, which are two of the most important tourist
destinations in the coast of the Pacific Ocean.
Coca Cola Femsa will also get hold of 2 bottling facilities and 20
distribution centers owned by Grupo Yoli. The deal will extend
Coca-Cola FEMSA’s reach to the state of Guerrero as well as in
parts of the state of Oaxaca the two markets in which Grupo
Yoli primarily operates.
Coca Cola Femsa seems to be in an expansion spree via acquisitions.
In December 2012, it bought 51% stake in The Coca-Cola
Company’s (KO) franchise bottler in Philippines, Coca-Cola
Bottlers Philippines for $688.5 million in cash.
The Coca-Cola Company has ownership
interests in many other bottling operations, including
Coca-Cola Enterprises Inc. (CCE),
Coca-Cola Hellenic Bottling Company S.A. (CCH),
and Coca-Cola Amatil Ltd. Currently, Coca Cola Femsa carries a
Zacks Rank #2 (Buy).
COCA-COLA ENTRP (CCE): Free Stock Analysis Report
COCA COLA HELNC (CCH): Free Stock Analysis Report
COCA COLA CO (KO): Free Stock Analysis Report
COCA-COLA FEMSA (KOF): Free Stock Analysis Report
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