Fomento Economico Mexicano (FEMSA) announced this Wednesday that it has reached agreements to acquire two independent companies dedicated to specialized distribution in the United States: Southeastern Paper Group, based in Spartanburg, South Carolina, and SWPlus, based in Wichita, Kansas.
As of September 2020, the combined revenue for the last 12 months of the acquired companies was approximately $ 380 million.
The company participates in the following businesses:
- In the beverage industry, through Coca-Cola FEMSA, the world’s largest franchise bottler of Coca-Cola products by volume.
- In the retail industry, through FEMSA Comercio, made up of the following divisions: (1) Proximity Division, operating the OXXO small format store chain, (2) Fuel Division, operating the OXXO GAS retail service station chain and (3) the Health Division, which includes pharmacies and related operations.
- In the beer industry, through Heineken Investment, which is the second largest equity stake in Heineken, one of the world’s leading brewers with operations in more than 70 countries.
- In other ancillary businesses, through our Other Businesses (as defined below), including logistics services, specialty distribution, point-of-sale refrigeration, food processing equipment, and plastics solutions.
FEMSA and its acquisitions
According to the company itself, the new acquisitions are consistent with FEMSA’s strategy of creating a national distribution platform, building on FEMSA’s capabilities and the foundation formed by the merger of WAXIE Sanitary Supply and North American Corporation carried out earlier this year.
Transactions are subject to customary closing conditions and authorizations, and are expected to close before the end of the year 2020.