SOURCE: Coca-Cola FEMSA, S.A.B. de C.V.

Coca-Cola FEMSA, S.A.B. de C.V.

December 12, 2011 08:00 ET

Coca-Cola FEMSA and Grupo CIMSA Successfully Merge Their Bottling Operations

MEXICO CITY--(Marketwire - Dec 12, 2011) - Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL) (NYSE: KOF) ("Coca-Cola FEMSA" or the "Company"), the largest public bottler of Coca-Cola products in the world in terms of sales volume, and Corporación de los Ángeles, S.A. de C.V. and its shareholders ("Grupo CIMSA") announce the successful merger of Grupo CIMSA with Coca-Cola FEMSA.

This transaction received all necessary approvals, including the approval of The Comisión Federal de Competencia, the Mexican antitrust authority, and The Coca-Cola Company. Subsequently, Coca-Cola FEMSA held an extraordinary shareholders meeting on December 9, 2011, at which the Company's shareholders approved this merger.

The aggregate enterprise value of this transaction is Ps. 11,000 million, which at the time of the announcement of this merger represented an EV/EBITDA multiple of approximately 10 times. As a result of the completion of the due diligence process, no material adjustment was recorded, and Grupo CIMSA's main shareholders received 75.4 million newly issued KOF series L shares. Coca-Cola FEMSA assumed Ps. 2,100 million in net debt.

"We are pleased to have successfully closed this merger in less than three months. Since we announced this transaction in September of this year, both teams focused intently on achieving this goal. Grupo CIMSA´s remarkably organized business made this fast integration possible. Now, we become one larger and stronger team that will leverage a combined platform of geographically contiguous assets and mutual capabilities. As we are enthusiastically about to begin another year, we remain committed to generate increased value for all our shareholders. We want to thank everyone who was involved in this transaction, including our new partner, Grupo CIMSA, with whom we share an aligned vision for future growth," said Carlos Salazar Lomelin, Chief Executive Officer of the Company.

Coca-Cola FEMSA will start integrating the results of Grupo CIMSA as of December 2011.

Profit and Creel, García-Cuéllar, Aiza y Enríquez acted as exclusive financial and legal advisors, respectively, to Grupo CIMSA in this transaction.

Deloitte Galaz, Yamazaki, Ruiz Urquiza, S.C. and Ritch Mueller acted as financial and legal advisors, respectively, to Coca-Cola FEMSA in this transaction.

Coca-Cola FEMSA, S.A.B. de C.V. produces and distributes Coca-Cola, Fanta, Sprite, Del Valle, and other trademark beverages of The Coca-Cola Company in Mexico (a substantial part of central Mexico, including Mexico City, as well as parts of southeast and northeast Mexico), Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide), Panama (nationwide), Colombia (most of the country), Venezuela (nationwide), Brazil (greater São Paulo, Campiñas, Santos, the state of Mato Grosso do Sul, part of the state of Goias, and part of the state of Minas Gerais), and Argentina (federal capital of Buenos Aires and surrounding areas), along with bottled water, juices, teas, isotonics, beer, and other beverages in some of these territories. The Company has 37 bottling facilities in Latin America and serves close to 1,700,000 retailers in the region.

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