Coca-Cola Femsa SAB Friday said its Brazilian subsidiary has agreed to buy Brazilian beverage company Vonpar in a deal valued at 3.5 billion reals ($1.09 billion)
Vonpar is one of the largest privately owned bottlers. The company sold 190 million unit cases of beverages, including 23 million unit cases of beer, generating 2.026 billion reals in revenue. It also has three bottling facilities and five distribution centers with close to 4,000 employees serving more than 15 million consumers.
Coca-Cola Femsa said Vonpar’s geographic footprint in Brazil is a perfect fit for the company.The deal will boost the bottler’s volume in Brazil by 25 percent, bringing it to 49 percent of the Coca-Cola system’s volume in the country. Coca-Cola Femsa is already the largest Coke bottler in Latin America.
"We are excited to continue consolidating our leadership position in Brazil. We are confident that Vonpar's talented group of professionals, and their track record of performance, coupled with their social and environmental commitment, will positively impact our combined operations going forward. The strategic geographic location and joint operational opportunities of this franchise will enable us to capture significant synergies and economies of scale. We strongly believe that we have built an unparalleled platform to continue executing on opportunities to grow profitably through scale, improved point-of-sale execution, and innovation.” said John Santa Maria, Chief Executive Officer of the Company.