Coca-Cola FEMSA S.A.B. de C.V.
) has entered into a definitive agreement to acquire another
Mexico-based Coca-Cola bottler Grupo Yoli, S.A. de C.V. for $700
Coca Cola Femsa will finance this transaction by issuing a net
debt of 1,009 million pesos. Moreover, Grupo Yoli will receive
approximately 42.4 million newly issued Coca Cola Femsa L series
shares at 184.0 pesos per share.
Grupo Yoli was founded in 1918 and is a Coke bottler since 1938.
The company sold about 99 million unit cases of beverages in
As part of the deal, Coca Cola Femsa will also get 10.14% stake
in Promotora Industrial Azucarera, and thus boost its holding in
the sugar producing company to 36.3%.
With this buyout, Coca Cola Femsa will get a strong foothold in
the southern states of Mexico and will also get a substantial
69,000 client base of Grupo Yoli in the region, including
Acapulco and Ixtapa Zihuatanejo, which are two of the most
important tourist destinations in the coast of the Pacific Ocean.
Coca Cola Femsa will also get hold of 2 bottling facilities and
20 distribution centers owned by Grupo Yoli. The deal will extend
Coca-Cola FEMSA's reach to the state of Guerrero as well as in
parts of the state of Oaxaca the two markets in which Grupo
Yoli primarily operates.
Coca Cola Femsa seems to be in an expansion spree via
acquisitions. In December 2012, it bought 51% stake in The
) franchise bottler in Philippines, Coca-Cola Bottlers
Philippines for $688.5 million in cash.
The Coca-Cola Company has ownership interests in many other
bottling operations, including
Coca-Cola Enterprises Inc.
Coca-Cola Hellenic Bottling Company S.A.
), and Coca-Cola Amatil Ltd. Currently, Coca Cola Femsa carries a
Zacks Rank #2 (Buy).
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COCA-COLA FEMSA (KOF): Free Stock Analysis
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