In an all-cash deal valued at $1.855 billion, Mexico-based Coca-Cola FEMSA (KOF -1.80%) has reached an agreement to acquire Brazil's second largest bottler of Coca-Cola products, Spaipa S.A. Industria Brasileira de Bebidas, Coca-Cola FEMSA recently announced.

According to Coca-Cola FEMSA's statement, acquiring Spaipa will boost its sales volume in Brazil by 40% and reach 39% of the country's "Coca-Cola system's volume."

Coca-Cola FEMSA has already secured bank commitments to finance the transaction using debt, the company announced. Coca-Cola FEMSA added that it expects the combined operational efficiencies and logistics of acquiring Spaipa will generate approximately $33 million in synergies at the EBITDA level within 18 to 24 months.

Carlos Salazar Lomelín, CEO of Coca-Cola FEMSA, said, "We continue to create a robust platform in Brazil with the acquisition of the second largest privately owned bottler in the system, operating in one of the regions with the highest GDP per capita in the country."

The deal is subject to approval from Brazil's antitrust authority, as well as from Coca-Cola.