01 Jul, 2011

Mexico City-based Coca-Cola FEMSA is acquiring the beverage arm of Grupo Tampico in a deal valued at around $790 million, according to an announcement from Marketwire this week.

The merger agreement for the acquisition by Coca-Cola FEMSA, the largest Coke bottler in Latin America, has been approved by both Coca-Cola FEMSA’s and Grupo Tampico’s Board of Directors and is subject to the completion of confirmatory legal, financial, and operating due diligence and to customary regulatory and corporate approvals, among them, the approval of The Coca-Cola Company and the Comisión Federal de Competencia, the Mexican antitrust authority.

White & Case acted as Tampico’s legal counsel for the deal, which will see Coca-Cola Femsa issue Tampico 63.5 million shares at a price of $8.80 a share for a total value of about $555 million, according to AMLaw. The company also will assume the Tampico division’s $235 million in debt.

Mr. Herman Fleishman, President of Grupo Tampico said: “We are proud that our family’s legacy and heritage is joining forces with the largest independent Coca-Cola bottler in the world. We are confident that combining our bottling operations with Coca-Cola FEMSA, a geographically diversified business with outstanding growth prospects and a talented management team, will provide benefits to the shareholders, suppliers and customers of Coca-Cola FEMSA and Grupo Tampico. We believe that the combined scale of our businesses, the contiguity of our territories, and our shared best practices will contribute to the creation of value for all of our shareholders. Additionally, we are pleased to serve on Coca-Cola FEMSA’s Board of Directors, allowing us to contribute our expertise to the decision-making process of the Company.”

The White & Case team was led by Miami corporate partners Chris Hansen, Pedro Álvarez, and Ed Sawyer; Monterrey corporate partner Eugenio Sepúlveda; and Mexico city M&A partner Iván Libenson.

Kuri Breña Sánchez Ugarte y Aznar, an 11-partner firm based in Mexico City, advised Coca-Cola Femsa in the transaction. 

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