Coca-Cola FEMSA Finalizes the Acquisition of 51% of The Coca-Cola Company's Philippines' Bottling Operation

Thu Jan 24, 2013 8:22pm EST

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

  MEXICO CITY, Jan 24 (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, 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 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 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
jose.castro@kof.com.mx
(5255) 1519-5120 / 5121

Roland Karig
roland.karig@kof.com.mx 
(5255) 1519-5186

Carlos Uribe
carlos.uribe@kof.com.mx
(5255) 1519-5148

Website: 
www.coca-colafemsa.com 

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