Fomento Economico Mexicano (FEMSA) announced on Tuesday that Envoy Solutions, FEMSA’s specialized distribution subsidiary in the United States, reached an agreement to acquire Daycon Products Co. (Daycon), an independent specialized distribution company based in Upper Marlboro, Maryland.
First of all, in May 2020, FEMSA closed a transaction with the shareholders of WAXIE and North American to form a new platform, now known commercially as “Envoy Solutions,” within the specialty distribution and cleaning products and consumables industry in the United States, with FEMSA acquiring a controlling majority interest in the combined entity.
Now, Daycon will further expand and strengthen FEMSA’s distribution footprint along the East Coast of the United States, including Washington D.C. and the states of Virginia, West Virginia, Maryland, Delaware, New Jersey and Pennsylvania.
For FEMSA, this transaction represents another important step on its strategic path to building a leading national distribution platform in the United States.
Revenue from the business acquired by Envoy Solutions during the last 12 months to June 2021 was approximately $ 75 million.
This transaction is subject to customary closing conditions and approvals and is expected to close during the third quarter of 2021.
FEMSA is a leading company that participates in the following businesses:
- In the beverage industry through Coca-Cola FEMSA, the largest public bottler of Coca-Cola products in the world by volume.
- Regarding the retail industry, through FEMSA Comercio, it includes the Proximity Division, operating OXXO, small-format chain stores; the Fuel Division, operating the OXXO Gas service station chain, and the Health Division, which includes pharmacies and related operations.
- In the beer industry, through the Investment in Heineken, which is the second largest shareholding position in Heineken, one of the world’s leading brewers with a presence in more than 70 countries.
- Other of its adjacent businesses include logistics services, specialized distribution, point of sale refrigeration and plastic solutions.