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Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) is a renowned Mexican multinational conglomerate headquartered in Monterrey, Mexico. FEMSA stands out in the beverage and retail sectors across Central and South America, operating the world's largest independent Coca-Cola bottling group and Mexico's largest convenience store chain.
FEMSA is structured into several divisions:
- Retail Division: This includes OXXO, the leading convenience store chain in Mexico with expanding operations under Proximity Americas and Proximity Europe divisions. The European division includes Valora, which operates convenience and foodvenience formats.
- Health Division: FEMSA operates drugstores and related activities through this division, alongside Digital@FEMSA, which encompasses digital financial services such as Spin by OXXO and Spin Premia.
- Beverage Division: Coca-Cola FEMSA, the largest bottler of Coca-Cola products globally by volume, forms a significant part of FEMSA's operations.
- Strategic Business Unit: This division handles logistics, distribution, point-of-sale refrigeration, and plastic solutions, serving both FEMSA's units and third-party clients.
In 2023, FEMSA divested its 15% stake in Heineken and its distribution business, focusing on its core sectors. Coca-Cola FEMSA and the OXXO chain collectively constituted 75% of FEMSA's total revenue and approximately 90% of its profits in 2023.
FEMSA's latest significant financial move includes a comprehensive Tender Offer to purchase outstanding US$552.83 million worth of 4.375% Senior Notes due 2043, with settlement concluded on November 9, 2023. This is part of FEMSA's strategic initiatives announced in February 2023, aimed at optimizing its business platform.
With over 350,000 employees across 18 countries, FEMSA is committed to creating economic and social value. The company is also recognized for its sustainability practices, featuring in indexes such as the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index, and the S&P/BMV Total Mexico ESG Index.
FEMSA continues to focus on growth through strategic investments and partnerships, strengthening its position as a key player in the beverage and retail industries.
FEMSA (NYSE: FMX) has announced its entry into the US convenience store industry by acquiring Delek's retail operations for $385 million. The deal includes 249 convenience stores, primarily located in Texas, operating under the DK brand. This strategic move allows FEMSA to tap into the $850 billion US convenience and mobility market, leveraging its OXXO brand expertise.
The acquisition aligns with FEMSA's long-term ambition to expand into the US market, utilizing its extensive retail experience from operations in Mexico and other countries. The transaction is expected to close in the second half of 2024, subject to regulatory approvals.
FEMSA and Delek US Holdings have signed a definitive agreement for FEMSA to acquire 100% of Delek's retail business for $385 million. The transaction includes 249 corporate stores operating under the DK brand, primarily in Texas and New Mexico. This marks FEMSA's entry into the US convenience and mobility industry, expanding its global retail operations. For Delek, this sale aligns with their strategy to unlock value for stakeholders and gain a competitive partner for ongoing retail fuel sales. The deal is expected to close in late Q3 or Q4 2024.
FEMSA, a Mexican conglomerate, operates over 22,800 OXXO stores across 5 countries. Delek US Holdings is a diversified downstream energy company with assets in refining, logistics, pipelines, renewable fuels, and convenience store retailing.
FEMSA announced its Q2 2024 results, showing strong performance across core business units. Total Consolidated Revenues grew 12.2% compared to Q2 2023. Proximity Americas saw an 8.9% increase in total Revenues, while Coca-Cola FEMSA reported 13.1% revenue growth. Digital services showed significant user growth, with Spin by OXXO increasing active users by 37.0% to 7.9 million.
Key financial highlights include:
- FEMSA Consolidated: 19.1% increase in Gross Profit, 15.8% growth in Income from Operations
- Proximity Americas: 17.2% increase in Gross Profit, 7.6% growth in Income from Operations
- Coca-Cola FEMSA: 17.2% increase in Gross Profit, 13.8% growth in Income from Operations
The company continued to execute its capital allocation framework, returning capital to shareholders through dividends and share buybacks. FEMSA also progressed with its divestiture plans, including the sale of its stake in Jetro Restaurant Depot.
Mill Point Capital has agreed to acquire FEMSA's commercial refrigeration and foodservice equipment businesses, Imbera and Torrey, in a carve-out transaction. The businesses will unite under a new platform called AeriTek Global . AeriTek, with an 80-year operating history, has an annual production capacity of over one million refrigeration units and 13 global sales offices. The company serves global food & beverage clients with innovative refrigeration solutions and foodservice processing products.
Hernan Mendoza, CEO of AeriTek, expressed excitement about partnering with Mill Point to drive growth, innovation, and operational excellence. Mill Point partners highlighted AeriTek's superior product quality, sustainability practices, and comprehensive aftermarket services as key differentiators. The transaction is subject to regulatory approvals and is expected to close in the coming months.
FEMSA has announced a definitive agreement with Mill Point Capital to divest its refrigeration and foodservice equipment operations, Imbera and Torrey, for 8,000 million pesos. This transaction is part of the ongoing execution of the FEMSA Forward plan introduced in February 2023. The deal is structured on a cash-free, debt-free basis and is subject to regulatory approvals and other customary conditions. The company expects the transaction to close in the coming months, marking a significant step in FEMSA's strategic realignment.
Fomento Económico Mexicano (FEMSA) announced it will host a conference call to discuss its second-quarter financial results on July 24, 2024, at 11:00 AM Eastern Time (9:00 AM Mexico City Time). The results will be released earlier that day before the markets open. Interested participants can join via a toll-free number for US callers or an international number for others. The conference ID is FEMSA. A live webcast will be available on the company's investor relations website, and a replay will be accessible immediately following the call.
FEMSA announced early tender results for its offer to purchase up to $250 million in aggregate principal amount of outstanding notes. The offer attracted $206.8 million worth of 3.500% Senior Notes due 2050, which were accepted for purchase. Holders who tendered by June 17, 2024, will receive $794.94 per $1,000 principal amount, including a $30 early tender premium. The initial settlement date is expected on June 20, 2024. The tender offer will expire on July 3, 2024. FEMSA's initiative is part of its strategic review of its business and capital structure announced in February 2023.
Fomento Económico Mexicano (FEMSA) (NYSE: FMX) has announced the total consideration for its Tender Offer to purchase up to $250 million aggregate principal amount of its 3.500% Senior Notes due 2050. Holders who tender their notes by June 17, 2024, at 5:00 p.m. New York time will receive $794.94 per $1,000 principal amount. The Tender Offer is set to expire on July 3, 2024. FEMSA has engaged BofA Securities as the dealer manager and Global Bondholder Services as the tender agent. The initial settlement date is expected to be June 20, 2024.
Fomento Económico Mexicano (FEMSA) announces the completion of a previous Accelerated Share Repurchase (ASR) agreement and the initiation of a new ASR. The company completed the repurchase of approximately 3.2 million American Depositary Shares (ADSs) at an average price of $123.27 per ADS, totaling $400 million, as of May 28, 2024. FEMSA has now entered into a new ASR to repurchase up to $600 million worth of its ADSs. The number of shares repurchased will be determined based on the daily volume-weighted average price of the ADSs during the agreement period, with the final settlement expected by Q4 2024.
Fomento Económico Mexicano, known as FEMSA (NYSE: FMX), announced the start of a tender offer aiming to purchase up to $250 million in aggregate principal amount of certain notes. This offer, under specific conditions, targets notes with a 3.500% interest rate due in 2050. The offer includes an early tender premium of $30 per $1,000 of principal for notes tendered by June 17, 2024. The offer will expire on July 3, 2024, unless extended or terminated sooner. BofA Securities, Inc. is acting as the dealer manager, with Global Bondholder Services as the tender and information agent. FEMSA’s initiative is part of a broader strategic review announced in February 2023.
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