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Coca-Cola Femsa acquires Brazil's Vonpar in $1.09bn deal

DBR Staff Writer Published 07 December 2016

Coca-Cola Femsa has completed the acquisition of Brazilian beverage firm Vonpar in a cash, stock and debt deal valued at R3.5bn ($1.09bn).

Coca-Cola Femsa's Brazilian unit Spal Industria Brasileira de Bebidas paid R1.73bn ($532m) to Vonpar's owners.

Another R688m ($211m) was converted into Coca-Cola Femsa shares.

The acquisition will expand Coca-Cola Femsa's presence in Brazil.

The company said Vonpar’s footprint is an ideal geographic fit that complements its own operations in Parana province in southern Brazil.

The bottler is expecting to increase its volume in Brazil by 25% by integrating Vonpar, thereby reaching 49% of the Coca-Cola system’s volume in the region.

Coca-Cola FEMSA CEO John Santa Maria said that the transaction would boost the bottler’s position further in the Coca-Cola network in a country that holds a significant market share for Coke products worldwide.

Maria added: “We are strengthening our footprint in Brazil by consolidating contiguous regions, allowing us to develop synergies through operating efficiencies and incorporating experienced and talented employees to Coca-Cola FEMSA's family.

“We feel confident to continue executing on a profitable portfolio and to offer different alternatives to satisfy our consumer's needs in this territory.”

Vonpar operates in Rio Grande do Sul and Santa Catarina provinces. It has three bottle facilities besides five distribution centers, and has a workforce of about 4,000 employees.

Vonpar had registered sales of 190 million unit cases of beverages in the one year period that ended on 30 June 2016 in which it made net revenue of R$2.02bn ($590m). The results of Vonpar will be integrated from December 2016, said Coca-Cola FEMSA.

In June, Coca-Cola FEMSA along with its parent company, The Coca-Cola Company, acquired Unilever’s AdeS soy-based beverage business in Mexico for $575m.


Image: Coca-Cola FEMSA completed acquisition of Vonpar. Photo: courtesy of COCA-COLA FEMSA.