Coca-Cola Femsa SA de CV signed a definitive agreement to buy Panamerican Beverages Inc. for $3.6 billion, including the assumption of $880 million debt

Food & Drink Weekly,  Jan 13, 2003  

Tags: Coca-Cola Co.

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Coca-Cola Femsa SA de CV signed a definitive agreement to buy Panamerican Beverages Inc. for $3.6 billion, including the assumption of $880 million debt. Coca-Cola Femsa, a unit of Fomento Economico Mexicano SA de CV, said Panamco Class A shareholders will receive a 1.82 billion cash payment. Holders of class B shares, which aren't listed on an exchange, will receive $ 38 a share, or a total of $247 million.

Pamamco shareholder Coca-Cola Co. will receive about 304 million unlisted Fomento Economico Mexicano series D shares in exchange for its Panamco Class A, B and C shares, instead of the cash payments. Coca-Cola Femsa, which had 2001 revenue of $1.72 billion, and Panamco, with 2001 revenue of $2.65 billion, will form the world's second-largest Coca Cola bottler. The combined company will continue to operate as Coca-Cola Femsa. Coca-Cola Femsa said it expects the combined company to have revenue of $4.6 billion and total volume of 1.9 billion unit cases.

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