Seale & Associates announced that it acted as exclusive financial advisor to Grupo Fomento Queretano, S.A.P.I. de C.V. (“Grupo Fomento Queretano”) and its shareholders, on its merger of its bottling operation with Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL; NYSE: KOF) (“Coca-Cola FEMSA”), the largest Coca-Cola franchise bottler in the world.
The announced aggregate enterprise value of the transaction was Ps. 6.6 billion. As a result of the merger, Grupo Fomento Queretano’s shareholders received 45.1 million newly issued KOF series L shares at a value of Ps. 119.29 per share. On the Friday prior to closing, KOF’s series L shares closed trading at a price of Ps. 139.22 (an appreciation of 16.7% from the agreed on price) representing a total aggregate enterprise transaction value of approximately Ps. 7.6 billion (US$580 million), including the assumption of debt. The transaction closed on May 7, 2012.
“We are honored to have advised on a second significant merger of a Coca-Cola family bottler in Mexico as part of the increasing consolidation of the industry. Once again, we are very pleased to have earned the trust and respect from both the Ruiz family and Coca-Cola FEMSA throughout this process,” stated Brett M. Carmel, Senior Managing Director, Seale & Associates.
Grupo Fomento Queretano is one of the oldest family-owned Coca-Cola bottlers in Mexico. The company produces and distributes trademark beverages of The Coca-Cola Company mainly in the state of Querétaro, as well as in parts of the states of México, Hidalgo, and Guanajuato.
With its origins as a bottling business dating back to 1912, the company was founded by Mr. Roberto Ruiz Obregón and currently operates 2 bottling facilities and 9 distribution centers, serving more than 37,000 clients with nearly 2,400 employees. In 2011, the beverage division is expected to sell 110 million unit cases of beverages and generate Ps. 3,020 million in net revenues.
Coca-Cola FEMSA produces and distributes trademark beverages of The Coca-Cola Company in Mexico (a substantial part of central Mexico, including Mexico City and southeast 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) and Argentina (federal capital of Buenos Aires and surrounding areas), along with bottled water, juices, teas, isotonics, beer and other beverages in some of these territories.
The Company has 37 bottling facilities in Latin America and serves more than 1,700,000 retailers in the region. In 2011, Coca-Cola FEMSA had sales of approximately 2,600 million unit cases of beverages, generating Ps. 124.7 billion of revenues. For more information, visit www.coca-colafemsa.com.
Seale & Associates Inc. is a global investment banking firm with extensive experience in mergers and acquisitions, corporate finance advisory, and enterprise-level strategy consulting. Our professionals are trusted advisors maintaining a high level of quality and integrity while presenting innovative ideas and solutions to address our clients’ most complex dealings. For more information, visit www.sealeassociates.com.