"We are pleased to have successfully closed this transaction in a relatively short period of time. This exemplifies what this team of professionals can achieve by working together towards the same goal: to consolidate our company's position as a leader in the beverage industry that remains focused on creating value for our shareholders," Coca-Cola FEMSA CEO Carlos Salazar Lomelin said in a statement.
Mexico-based Coca-Cola FEMSA is engaged in the production, distribution, and marketing of Coca-Cola trade beverages, and is 31.6% owned by beverages giant Coca-Cola, and is its largest bottler in Latin America. Meanwhile, Tampico became the first Coca-Cola bottler in Mexico in 1912 and has four bottling facilities and 25 distribution centers in Mexico.
The merger was approved by the shareholders of Coca-Cola FEMSA at an ordinary and extraordinary shareholders meeting. The company's by-laws were also amended to increase the number of board members from 18 to 21.
The shareholders also approved the appointment of Herman Fleishman as president and Robert Fleishman as vice president of Grupo Tampico, as well as the director and alternate director of the board, respectively.
Coca-Cola FEMSA noted that the deal received all necessary approvals, primarily from the Comisión Federal de Competencia, the Mexican antitrust authority, and The Coca-Cola Co.
On June 28, Coca-Cola FEMSA agreed to acquire the beverage division of Grupo Tampico in an all-stock deal that has an aggregate enterprise value of 9.3 billion Mexican pesos or $790 million, including 2.75 billion Mexican pesos or $233 million of debt.
Privately-held Grupo Tampico shareholders received 63.5 million newly issued KOF series L shares at a value of 103.20 Mexican pesos per share as part of the merger deal. The combined company will have a sales volume representing about 45% of the Coca-Cola system's volume in Mexico.
"We embrace the Fleishman family, and we are confident that their expertise in the Mexican beverage industry will greatly contribute to our company going forward," Salazar Lomelin added.
From the October 17, 2011, Prepared Foods' Daily News.