Coca-Cola FEMSA acquires 51% stake in Coca-Cola Bottlers Philippines for $688.5m
Coca-Cola FEMSA, a Mexico-based franchise bottler of Coca-Cola products in the world, has acquired 51% stake in Coca-Cola Bottlers Philippines (CCBPI) from The Coca-Cola Company for $688.5m.
Closing of this all-cash transaction will be effective on 25 January 2013. The deal also enables Coca-Cola FEMSA to acquire the remaining stake in CCBPI within next seven years. According to the terms of the agreement, in the sixth year, FEMSA will be eligible to sell its ownership to The Coca-Cola Company.
The purchase price takes the total value of the CCBPI to around $1.3bn.
Coca-Cola FEMSA CEO Carlos Salazar Lomelin said the current transaction is fifth in the last 18 months, including the recent merger with Mexico-based family-owned bottlers Grupo Yoli, which totaled their overall investment to more than $3.5bn.
"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," Lomelin added.
"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."