Coca-Cola FEMSA (NYSE: KOF ) , the largest franchise bottler of Coca-Cola products in the world, has agreed to buy a 51% stake in Coca-Cola's (NYSE: KO ) Coca-Cola Bottlers Philippines (CCBPI) for $688.5 million.
The all-cash purchase is expected to close in early 2013. Mexico-based Coca-Cola FEMSA will have the option to buy the remaining 49% stake from Coca-Cola any time in the next seven years, and can sell its 51% stake back to Coca-Cola any time during year six.
"Today we are pleased to announce another important milestone in the history of our group and the relationship with our partner, The Coca-Cola Company," said José Antonio Fernández Carbajal, Chairman of the Board of Directors of Coca-Cola FEMSA. "We see profitable growth prospects and long-term returns in emerging market economies."
CCBPI's operations are comprised of 23 production plants serving close to 800,000 customers and are expected to sell 530 million unit cases of beverages in 2012. According to the companies, the Philippines has one of the highest per-capita consumption rates of Coca-Cola products in the region and presents "vibrant growth prospects."
Coca-Cola FEMSA delivers more than 2.5 billion unit cases per year.