Coca-Cola Femsa SAB de CV (MXK:KOFL), the bottler of Coca Cola in Mexico, said on Friday it would pay USD688.5m (EUR525.3m) in cash to buy 51% in The Coca-Cola Company’s (NYSE:KO) bottling unit in the Philippines.
The deal, which allows Coca-Cola Femsa to expand beyond Latin America, gives the buyer the option to purchase the remaining 49% in Coca-Cola Bottlers Philippines Inc (CCBPI) at any time within the next six years.
Coca-Cola Femsa will increase its exposure to fast-growing emerging economies with this acquisition, expecting profitable growth and long-term returns in these economies, it said.
The transaction, reflecting an enterprise value of USD1.35bn for CCBPI, is seen to wrap up in early 2013.
CCBPI runs 23 production plants, serving nearly 800,000 customers and is expected to sell some 530m unit cases of beverages in 2012.
The buyer’s advisors include Allen & Company LLC, Rothschild, Cleary, Gottlieb, Steen & Hamilton LLP and SyCip Salazar Hernandez & Gatmaitan.