Coca-Cola to acquire stake in Mexican beverage maker
December 20, 2006
by Eric Schroeder
MEXICO CITY — Coca-Cola FEMSA, S.A.B. de C.V. and The Coca-Cola Co. entered an agreement with the controlling shareholders of Jugos del Valle, S.A.B. de C.V. to conduct a public tender offer in Mexico of up to 100% of the outstanding public shares of Jugos del Valle for approximately $380 million in cash.
Jugos del Valle is the second largest producer of packaged juices, nectars and fruit flavored beverages in Mexico, the largest producer in Brazil, and has presence in other Latin American markets. The company had approximately $440 million in total revenues for the 12-month period ended Sept. 30.
"This joint venture represents a formidable platform to further develop our non-carbonated business, in a segment that is growing three times faster than other non-alcoholic beverages," said Carlos Salazar, chief executive officer of Coca-Cola FEMSA. "Working together with The Coca-Cola Co. and the rest of the Coca-Cola bottling system in Mexico and Brazil, we are unlocking new value-creation opportunities and developing a competitive portfolio of beverages."