FEMSA announces agreement with Mill Point Capital to divest FEMSA’s refrigeration and foodservice equipment operations
Rhea-AI Summary
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.
Positive
- Divestment of non-core assets aligns with FEMSA Forward strategic plan
- Transaction value of 8,000 million pesos improves company's financial position
- Deal structured on a cash-free, debt-free basis, potentially maximizing value for FEMSA
Negative
- Potential loss of revenue streams from Imbera and Torrey operations
- Possible reduction in operational diversification
News Market Reaction – FMX
On the day this news was published, FMX declined 1.41%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
MONTERREY, Mexico, July 17, 2024 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA” or the “Company”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announced it has reached a definitive agreement with Mill Point Capital LLC, a leading private equity firm, to divest FEMSA’s refrigeration and foodservice equipment operations, Imbera and Torrey, for a total amount of
This transaction represents an additional step in the continued execution of the FEMSA Forward plan that was communicated in February of 2023. The transaction is subject to regulatory approvals and other customary conditions, and is expected to close in the following months.
About FEMSA
FEMSA is a company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. It participates in the retail industry through a Proximity Americas Division operating OXXO, a small-format store chain, and other related retail formats, and Proximity Europe which includes Valora, our European retail unit which operates convenience and foodvenience formats. In the retail industry it also participates though a Health Division, which includes drugstores and related activities and Digital@FEMSA, which includes Spin by OXXO and Spin Premia, among other digital financial services initiatives. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume. Across its business units, FEMSA has more than 392,000 employees in 18 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index: S&P/BMV Total México ESG, among other indexes that evaluate its sustainability performance.
About Mill Point Capital LLC
Mill Point Capital LLC is a private equity firm focused on control investments in lower-middle market companies in North America across the industrials, business services and IT services sectors. Mill Point’s experienced team of investors and Executive Partners seek portfolio company value enhancement through rigorous implementation of transformative strategic initiatives and operational improvements. Mill Point is based in New York, NY. For more information, please visit www.millpoint.com.
FAQ
What is the value of FEMSA's divestment of Imbera and Torrey operations?
Who is acquiring FEMSA's refrigeration and foodservice equipment operations?
When is the divestment of FEMSA's Imbera and Torrey operations expected to close?
How does the divestment of Imbera and Torrey relate to FEMSA's strategic plans?
