Coca-Cola Femsa, SAB de CV and The Coca-Cola Company entered into an agreement to jointly acquire the Colombian Brisa bottled water business (including the Brisa brand and production assets) from Bavaria, a subsidiary of SABMiller.
The closing of the transaction is subject to approval from the Colombian anti-trust authorities and compliance by both parties with customary closing conditions.
Coca-Cola Femsa said that the transaction will increase its presence in the water business and complements its portfolio. Brisa sold 47 million unit cases in 2007 in Colombia.
“Through this acquisition, we will take another important step together with The Coca-Cola Company.
“This transaction will expand our product portfolio to satisfy our consumers’ preferences, reinforce our water strategy and continue to deliver value for our shareholders,” said Jose Antonio Fernandez Carbajal, chairman of the board of Coca-Cola Femsa and Femsa.
The purchase price, which will be shared equally by Coca-Cola Femsa and The Coca-Cola Company, is US$92 million.
The parties have also agreed to customary arrangements regarding the performance of the business between signing and closing.
In the past financial year, the business sold more than 2.6 million hectolitres of Brisa in Colombia. Agua Brisa presentations of still, sparkling and flavoured waters are produced in 13 plants across Colombia and are currently sold in over 230,000 outlets throughout the country. The Brisa operations in Panama are excluded from the transaction.
Karl Lippert, President of Bavaria, commented: “The disposal of the water business will enable Bavaria to focus on its core strength, the brewing and distribution of beer and malted beverages. After closing, the transfer of assets and the commercial operation will be subject to a transition arrangement of several months, during which Bavaria will still be producing, selling and distributing Brisa.”
Bavaria is the largest beverage company in Colombia. Its brands include: Águila, Águila Light, Póker, Costeña, Pilsen, Club Colombia, Brava, Barena, Costeñita, Cola & Pola and Pony Malta.
Femsa has 31 bottling facilities in Latin America and serves over 1,500,000 retailers in the region. The Coca-Cola Company owns a 31.6% equity interest in Coca-Cola FEMSA.
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