CVI: the latest purchase of Coca-Cola FEMSA
The Mexican company Coca-Cola FEMSA announced this Friday that its Brazilian subsidiary Spal Industria Brasileira de Bebidas SA (Spal) reached an agreement to acquire 100% of the Coca-Cola Bottler, CVI Refrigerantes Ltda. (CVI).
In Brazil, Coca-Cola FEMSA distributes its finished products to retailers through a combination of its own fleet of trucks and external distributors, while maintaining control over sales activities.
In designated areas of Brazil, external distributors buy their products and resell them to retailers.
Also in Brazil, Coca-Cola FEMSA sells most of its beverages in small retail stores.
In addition, the company sells products through modern channels of distribution and «local» consumption.
Modern distribution channels in Brazil include large, organized retail chains such as wholesale supermarkets and discount stores that sell fast-moving consumer goods.
CVI
The parties agreed to a cash transaction for a business value of 632.5 million reais (subject to confirmation of debt, cash and other customary adjustments between signature and closing).
At an estimated proforma for 2021, CVI volume is approximately 30.9 million unit cases, not including beer.
CVI operates a bottling plant and three distribution centers in the state of Rio Grande do Sul, serving more than 13,000 points of sale and more than 2.8 million consumers.
Its presence limits with Coca-Cola FEMSA’s operations in southern Brazil and Uruguay, reinforcing Coca-Cola FEMSA’s leadership position in the region and allowing Coca-Cola FEMSA’s volume to reach 52% of the System’s volume. Coca-Cola in Brazil.
“We are delighted to announce that we have reached an agreement to acquire CVI. This transaction not only complements our presence in southern Brazil, but represents an additional step in our strategy to continue exploring profitable inorganic growth opportunities with the ultimate goal of generating value for our shareholders and a positive impact on the communities where we operate » said John Santa Maria, CEO of Coca-Cola FEMSA
The transaction is subject to customary closing conditions and the approval or authorization of the respective authorities.
