Coca-Cola FEMSA, a Mexican bottler of The Coca-Cola, is set to purchase100% of Brazilian bottler Companhia Fluminense de Refrigerantes for $448m in an all-cash transaction.The agreement is subject to the approval of the Conselho Administrativo de Defesa Econòmica, the Brazilian antitrust authority and The Coca-Cola.
Founded in 1949 through the first franchise agreement by The Coca-Cola, Companhia operates in Brazilian states - Minas Gerais, Rio de Janeiro and São Paulo. It currently has one bottling facility and four distribution centers.
For the last 12 months ended 31 March 2013, Companhia Fluminense's estimated pro forma consolidated EBITDA was $ 40m.
Coca-Cola FEMSA chief executive officer Carlos Salazar Lomelín said that this transaction is aimed at domestic consumption prospects and socio-economic dynamics of the Brazilian market.
"This franchise represents an important link between our São Paulo and Minas Gerais footprint, setting the stage for important synergies to be captured from the geographic contiguity of our territories and the reconfiguration of the supply chain of our combined operations," Salazar added.
"Our growing family of employees will continue to work to capitalize on the opportunities that the beverage industry presents to us in our markets."
