Coca-Cola FEMSA To Buy Spaipa S.A. In Brazil For Enterprise Value Of $1.855 Bln

(RTTNews) - Coca-Cola FEMSA S.A.B de C.V. (KOF) announced Saturday that it has reached an agreement to acquire 100% of Spaipa S.A. Industria Brasileira de Bebidas, the second largest privately owned bottler in the Brazilian Coca-Cola system, for enterprise value of $1.855 billion in cash.

During 2012, Spaipa sold 236.0 million unit cases of beverages, generating net revenues of about $929 million and a pro forma consolidated EBITDA of $152 million.

The company said the transaction will increase its volume in Brazil by 40%, allowing it to reach 39% of the Coca-Cola system's volume in the country.

The preliminary estimated amount of synergies to be captured from this transaction in the next 18 to 24 months is about $33 million at the EBITDA level.

The Board of Directors of Coca-Cola FEMSA has approved the agreement. The agreement is subject to the approval of the Conselho Administrativo de Defesa Econòmica, the Brazilian antitrust authority.

Coca-Cola FEMSA noted that it will also seek the approval of the Coca-Cola Company for this transaction. The transaction will be financed with new bank debt for which the company has obtained formal commitments.

KOF closed Friday's trading at $120.02, down $4.21 or 3.39 percent.