Coca-Cola FEMSA, S.A.B. de C.V. (KOF) announced that it has signed definitive deal with The Coca-Cola Co (KO) to buy 51% of Coca-Cola Bottlers Philippines Inc. or CCBPI for $688.5 million in an all-cash transaction. The transaction is expected to close in early 2013.
Coca-Cola FEMSA stated that the purchase price represents an aggregate enterprise value for 100% of the bottler of $1.350 billion which results in a 2012 projected EBITDA multiple of approximately 13.5 times.
As part of the agreement, Coca-Cola FEMSA will have an option to buy remaining 49% of CCBPI at any time during the seven years following the closing and will have a put option to sell its ownership to The Coca-Cola Company any time during year six.
The operations of CCBPI are comprised of 23 production plants, serve close to 800,000 customers and are expected to sell about 530 million unit cases of beverages in 2012.
by RTT Staff Writer
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