Coca-Cola FEMSA Finalizes the Acquisition of 51% of The Coca-Cola Company's Philippines' Bottling Operation
January 24 2013 - 8:21PM
Marketwired
Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL) (NYSE: KOF), the
largest franchise bottler of Coca-Cola products in the world, has
finalized the acquisition of 51% of Coca-Cola Bottlers Philippines,
Inc. (CCBPI) from The Coca-Cola Company (NYSE: KO), the world's
largest beverage company, for an amount of US$688.5 million in an
all-cash transaction. The closing of this transaction will be
effective on January 25, 2013.
This purchase price represents an aggregate enterprise value for
100% of the bottler of US$1,350 million. As part of the agreement,
Coca-Cola FEMSA will have an option to acquire the remaining 49% of
CCBPI at any time during the seven years following the closing and
will have a put option to sell its ownership to The Coca-Cola
Company any time during year six.
"Our company has started 2013 on the right foot. We recently
announced a merger agreement with Grupo Yoli and its shareholders,
one of the oldest family-owned bottlers in the Coca-Cola system in
Mexico, which serves both Acapulco and Ixtapa-Zihuatanejo, two of
the most important tourist destinations in the coast of the Pacific
Ocean. This marks our fifth transaction in the Coca-Cola bottling
space in the last 18 months, representing an aggregate investment
of more than US$3,500 million. Today, we are pleased to announce
the closing of the transaction with our partner, The Coca-Cola
Company, to strengthen our position in the global beverage industry
through the acquisition of a majority stake in their bottling
operations in the Philippines. After almost 200 years, we now have
the opportunity to reconnect the Manila-Acapulco route through the
exchange of our cultures and operating best practices. More
recently, we had the privilege to express our firm belief and
confidence in the Philippines to President Benigno Aquino III
himself, looking forward to a successful relationship with the
Philippine government. We are certain that our operators have the
skills and operational capabilities to take on the challenges and
capture the opportunities that we have identified in our Philippine
operation. Our values and culture will extend to our growing family
of employees as we reinforce our commitment to generate economic,
social, and environmental value together," said Carlos Salazar
Lomelin, Chief Executive Officer of Coca-Cola FEMSA.
Coca-Cola FEMSA will recognize the results of CCBPI through the
equity method as of the closing date.
Coca-Cola FEMSA, S.A.B. de C.V. produces and distributes
Coca-Cola, Fanta, Sprite, Del Valle, and other trademark beverages
of The Coca-Cola Company in Mexico (a substantial part of central
Mexico, including Mexico City, as well as southeast and northeast
Mexico), Guatemala (Guatemala City and surrounding areas),
Nicaragua (nationwide), Costa Rica (nationwide), Panama
(nationwide), Colombia (most of the country), Venezuela
(nationwide), Brazil (greater São Paulo, Campiñas, Santos, the
state of Mato Grosso do Sul, part of the state of Goias, and part
of the state of Minas Gerais), Argentina (federal capital of Buenos
Aires and surrounding areas) and Philippines (nationwide), along
with bottled water, juices, teas, isotonics, beer, and other
beverages in some of these territories. The Company has 60 bottling
facilities and serves close to 315 million consumers through more
than 2,500,000 retailers with more than 100,000 employees
worldwide.
For Further Information: Investor Relations Jose
Castro Email Contact (5255) 1519-5120 / 5121 Roland Karig Email
Contact (5255) 1519-5186 Carlos Uribe Email Contact (5255)
1519-5148 Website: www.coca-colafemsa.com
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