Coca-Cola FEMSA Signs a Definitive Agreement to Acquire 51% of The Coca-Cola Company's Philippines' Bottling Operation
December 14 2012 - 12:01AM
Marketwired
Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL) (NYSE: KOF), the
largest franchise bottler of Coca-Cola products in the world, and
The Coca-Cola Company (NYSE: KO), the world's largest beverage
company, have signed a definitive agreement for Coca-Cola FEMSA to
acquire 51% of Coca-Cola Bottlers Philippines, Inc. (CCBPI) for an
amount of US$688.5 million in an all-cash transaction.
This purchase price represents an aggregate enterprise value for
100% of the bottler of US$1,350 million which results in a 2012
projected EBITDA multiple of approximately 13.5 times. 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. The transaction is
expected to close in early 2013.
The Philippines' market represents an expansion of Coca-Cola
FEMSA's bottling footprint beyond Latin America, reinforcing its
exposure to fast growing economies and its commitment to The
Coca-Cola System. The Philippines has one of the highest per capita
consumption rates of Coca-Cola products in the region and presents
significant opportunities for further growth. Coca-Cola FEMSA
believes that by leveraging its proven expertise and operating
capabilities in an economy with vibrant growth prospects and an
attractive socio-economic and demographic profile it will be
capable to capture the opportunities and further improve the
bottler's operations and financial results.
"Today we are pleased to announce another important milestone in
the history of our group and the relationship with our partner, The
Coca-Cola Company," said José Antonio Fernández
Carbajal, Chairman of the Board of Directors of Coca-Cola
FEMSA. "We see profitable growth prospects and long-term
returns in emerging market economies. We welcome the unique
opportunity to learn and share new capabilities to grow as an
integrated company, as professionals, and as men and women together
with our communities. Our principles and values share a common
ground with the Filipino community and we are certain that together
we can extend FEMSA's long-lasting commitment to the continuous
creation of economic, social and environmental value in every
community where we operate."
"This announcement reflects our long-standing belief in the
global franchise system and our continued commitment to innovation
and growth in the Philippines, just as we have done over the last
100 years," said Muhtar Kent, Chairman and CEO,
The Coca-Cola Company. "Our brands and our business have very
deep roots in the Philippines, and we look forward to working with
our strong partners at Coca-Cola FEMSA to capture future
opportunities for growth and investment and bring even more social
and economic value to customers and communities throughout the
country."
"Through this transaction, we strengthen our position in the
global beverage industry," said Carlos Salazar
Lomelin, Chief Executive Officer of Coca-Cola FEMSA. "This
represents an important step in our growth strategy and our
commitment to The Coca-Cola System. We embrace a growing family of
employees that will continue to generate value together, based on
the foundation of our sustainable business model. This transaction
reinforces our commitment to identify avenues of growth and value
creation for our shareholders."
The operations of CCBPI are comprised of 23 production plants,
serve close to 800,000 customers and are expected to sell
approximately 530 million unit cases of beverages in 2012.
Coca-Cola has been present in the Philippines since the start of
the 20th century and has been locally produced since 1912. The
Philippines received the first Coca-Cola bottling and distribution
franchise in Asia.
Allen & Company LLC. and Rothschild acted as financial
advisors and Cleary, Gottlieb, Steen & Hamilton and SyCip
Salazar Hernandez & Gatmaitan acted as legal advisors to
Coca-Cola FEMSA on this transaction.
ADDITIONAL INFORMATION
For additional relevant information, please
refer to the presentation regarding the Philippines transaction,
which is available on the Investor Relations section of our website
www.coca-colafemsa.com.
CONFERENCE CALL We invite you to
participate in the conference call to discuss the transaction,
which will be held on Friday, December 14, 2012, at 12:00 P.M.
Eastern Time / 11:00 A.M. Mexico City Time / 01:00 A.M. Manila Time
(December 15, 2012 in Manila).
The speakers on this call will be: Carlos Salazar, Chief
Executive Officer of Coca-Cola FEMSA and Hector Treviño, Chief
Financial Officer of Coca-Cola FEMSA
To participate in the conference call, please dial: Domestic
U.S.: 800-573-4840 or International: 617-224-4326. We invite
investors to listen to the live audio cast of the conference call
on the Company's website, www.coca-colafemsa.com.
If you are unable to participate live, an instant replay of the
conference call will be available through Thursday, December 20,
2012. To listen to the replay, please dial: Domestic U.S.:
888-286-8010 or International: 617-801-6888. Pass code:
90452105.
Coca-Cola FEMSA, S.A.B. de C.V. produces and distributes
Coca-Cola, Fanta, Sprite, Del Valle, and other trademark beverages
of The Coca-Cola Company in Mexico (a substantial part of central
Mexico, including Mexico City, as well as southeast and northeast
Mexico), Guatemala (Guatemala City and surrounding areas),
Nicaragua (nationwide), Costa Rica (nationwide), Panama
(nationwide), Colombia (most of the country), Venezuela
(nationwide), Brazil (greater São Paulo, Campiñas, Santos, the
state of Mato Grosso do Sul, part of the state of Goias, and part
of the state of Minas Gerais), Argentina (federal capital of Buenos
Aires and surrounding areas) and the Philippines (nationwide),
along with bottled water, juices, teas, isotonics, beer, and other
beverages in some of these territories. The Company has 60 bottling
facilities and serves more than 2,500,000 retailers with more than
100,000 employees worldwide.
For Further Information: Investor Relations Jose Castro Email
Contact (5255) 5081-5120 / 5121 Roland Karig Email Contact (5255)
5081-5186 Carlos Uribe Email Contact (5255) 5081-5148 Website:
www.coca-colafemsa.com