Mexico's Coca-Cola FEMSA closes on Philippines deal

Coca-Cola FEMSA, S.A.B. de C.V., 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, 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.

Coca-Cola FEMSA will recognize the results of CCBPI through the equity method as of the closing date.

Last year, CCBPI produced approximately 530 million unit cases (24 eight-ounce servings per unit case) from its 23 plants nationwide and notched roughly $1.1 billion in sales, serving nearly 800,000 customers in the process.

Login

Fight outsourcing and job destruction!