MONTERREY, Sept 3 Mexican bottler Coca-Cola
Femsa said on Tuesday it is open to more
acquisitions, just days after its $1.9 billion purchase of
Brazil's Spaipa, its ninth deal in the last two years.
Hector Trevino, chief financial officer of the venture
between Coca-Cola Co and Mexican retail and bottling
company Femsa, said the company had the financial
wherewithal to make new purchases.
He said the company's net debt would be 1.6 times its
earnings before interest, tax, depreciation and amortization
(EBITDA) by December, and that it was comfortable with a level
of up to twice its EBITDA, giving it the leeway for new
"If we were to face a purchase that requires more than that,
we could also use our stock, and if not...we could also do a
public stock offering," Trevino told an analysts briefing.
The Spaipa S.A. Industria Brasileira de Bebidas acquisition
come on the heels of Coca-Cola Femsa's $448 million purchase of
Brazil's Companhia Fulminense de Refigerantes. Some have said
the purchases could reflect an effort to diversify away from a
potentially less lucrative Mexican market.
Mexico's government is due to present a reform plan on
Sunday that is expected to include a tax on fizzy drinks.
It wants to raise the country's paltry tax take by four
percentage points and the move is part of a wider agenda that
includes energy and telecoms reforms to boost growth in Latin
America's second-largest economy.
Coca-Cola Femsa shares closed down 1.3 percent at 163.95
pesos ($12.22) per share.