Coca-Cola FEMSA Signs a Definitive Agreement to Acquire 51% of The Coca-Cola Company's Philippines' Bottling Operation

Fri Dec 14, 2012 12:01am EST

* Reuters is not responsible for the content in this press release.

  MEXICO CITY, Dec 14 (Marketwire) -- 
Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL) (NYSE: KOF), the largest
franchise bottler of Coca-Cola products in the world, and The Coca-Cola
Company (NYSE: KO), the world's largest beverage company, have signed a
definitive agreement for Coca-Cola FEMSA to acquire 51% of Coca-Cola
Bottlers Philippines, Inc. (CCBPI) for an amount of US$688.5 million in
an all-cash transaction.

    This purchase price represents an aggregate enterprise value for 100% of
the bottler of US$1,350 million which results in a 2012 projected EBITDA
multiple of approximately 13.5 times. 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. The transaction is expected to close in early 2013.

    The Philippines' market represents an expansion of Coca-Cola FEMSA's
bottling footprint beyond Latin America, reinforcing its exposure to fast
growing economies and its commitment to The Coca-Cola System. The
Philippines has one of the highest per capita consumption rates of
Coca-Cola products in the region and presents significant opportunities
for further growth. Coca-Cola FEMSA believes that by leveraging its
proven expertise and operating capabilities in an economy with vibrant
growth prospects and an attractive socio-economic and demographic profile
it will be capable to capture the opportunities and further improve the
bottler's operations and financial results.

    "Today we are pleased to announce another important milestone in the
history of our group and the relationship with our partner, The Coca-Cola
Company," said Jose Antonio Fernandez Carbajal, Chairman of the Board of
Directors of Coca-Cola FEMSA. "We see profitable growth prospects and
long-term returns in emerging market economies. We welcome the unique
opportunity to learn and share new capabilities to grow as an integrated
company, as professionals, and as men and women together with our
communities. Our principles and values share a common ground with the
Filipino community and we are certain that together we can extend FEMSA's
long-lasting commitment to the continuous creation of economic, social
and environmental value in every community where we operate."

    "This announcement reflects our long-standing belief in the global
franchise system and our continued commitment to innovation and growth in
the Philippines, just as we have done over the last 100 years," said
Muhtar Kent, Chairman and CEO, The Coca-Cola Company. "Our brands and our
business have very deep roots in the Philippines, and we look forward to
working with our strong partners at Coca-Cola FEMSA to capture future
opportunities for growth and investment and bring even more social and
economic value to customers and communities throughout the country."

    "Through this transaction, we strengthen our position in the global
beverage industry," said Carlos Salazar Lomelin, Chief Executive Officer
of Coca-Cola FEMSA. "This represents an important step in our growth
strategy and our commitment to The Coca-Cola System. We embrace a growing
family of employees that will continue to generate value together, based
on the foundation of our sustainable business model. This transaction
reinforces our commitment to identify avenues of growth and value
creation for our shareholders."

    The operations of CCBPI are comprised of 23 production plants, serve
close to 800,000 customers and are expected to sell approximately 530
million unit cases of beverages in 2012. Coca-Cola has been present in
the Philippines since the start of the 20th century and has been locally
produced since 1912. The Philippines received the first Coca-Cola
bottling and distribution franchise in Asia.

    Allen & Company LLC. and Rothschild acted as financial advisors and
Cleary, Gottlieb, Steen & Hamilton and SyCip Salazar Hernandez &
Gatmaitan acted as legal advisors to Coca-Cola FEMSA on this transaction.

    ADDITIONAL INFORMATION

    For additional relevant information, please refer to the presentation
regarding the Philippines transaction, which is available on the Investor
Relations section of our website www.coca-colafemsa.com.

    CONFERENCE CALL
 We invite you to participate in the conference call to
discuss the transaction, which will be held on Friday, December 14, 2012,
at 12:00 P.M. Eastern Time / 11:00 A.M. Mexico City Time / 01:00 A.M.
Manila Time (December 15, 2012 in Manila).

    The speakers on this call will be:
 Carlos Salazar, Chief Executive
Officer of Coca-Cola FEMSA and
 Hector Trevino, Chief Financial Officer
of Coca-Cola FEMSA

    To participate in the conference call, please dial: Domestic U.S.:
800-573-4840 or International: 617-224-4326. We invite investors to
listen to the live audio cast of the conference call on the Company's
website, www.coca-colafemsa.com.

    If you are unable to participate live, an instant replay of the
conference call will be available through Thursday, December 20, 2012. To
listen to the replay, please dial: Domestic U.S.: 888-286-8010 or
International: 617-801-6888. Pass code: 90452105.

    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 Sao Paulo, Campinas, 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 the 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 more
than 2,500,000 retailers with more than 100,000 employees worldwide.

    

For Further Information:

Investor Relations

Jose Castro
jose.castro@kof.com.mx
(5255) 5081-5120 / 5121

Roland Karig
roland.karig@kof.com.mx 
(5255) 5081-5186

Carlos Uribe
carlos.uribe@kof.com.mx
(5255) 5081-5148

Website: 
www.coca-colafemsa.com 

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