MONTERREY, MEXICO -- Arca Continental S.A.B. de C.V. (“AC”) (BMV: AC) and Corporacion Lindley S.A. (“CL”) (BVL: CORLINI1) announced today that they have agreed to integrate their operations.
Corporacion Lindley, the sole Coca-Cola bottler in Peru, and Arca Continental, with operations in Mexico, Ecuador, Argentina and the U.S., will integrate, in AC, an entity with revenues of nearly US$5.4 billion and EBITDA of US$1.1 billion, making it one of the largest bottlers in the global Coca-Cola system.
“The union of two winning entities with a solid organizational culture will drive the value creation strategy that we have been implementing throughout our history and will enable us to strengthen the competitiveness and leadership of our products in the region, as always, under a framework of sustainability and social responsibility”, commented Manuel L. Barragan Morales, Chairman of the Board of Directors of Arca Continental.
AC acquired from various members of the Lindley family that form the control group of CL (the “Lindley Family”) 308,847,336 common shares issued by CL, representing 53.16% of the voting shares, and has agreed to acquire 1,459,941 investment shares of CL, which represent 2.03% of its investment shares. The shares mentioned represent 47.52% of CL’s total shares outstanding.
To purchase these shares, AC paid the Lindley Family US$760 million in cash. Subsequently and independently, the Lindley Family, in turn, has agreed to subscribe and pay for 64.5 million AC shares in the amount of US$400 million. These shares will be issued through a capital increase by AC once the necessary approvals are obtained from the regulators and its Shareholders’ Meeting.
“It is time to continue growing and taking on new challenges, consolidating and materializing the vision and initiative of my father, Johnny Lindley Taboada, who always believed in the future of globalization. The decision to seal this Alliance of Corporacion Lindley with Arca Continental began with him and is now complete. Together we will maximize our businesses in terms of quality and quantity. We are evolving from a centennial bottler in Peru to becoming part of a multinational food and beverage company with an excellent outlook and reputation throughout the entire continent, which maintains the best global practices”, commented Johnny Lindley Suarez, Chairman of the Board of Corporacion Lindley.
The transaction was approved by The Coca-Cola Company as well as the Boards of Directors of both companies.
“After many years of collaborating and sharing a long-term vision, the integration of our companies will allow us to unite our traditions of excellence of more than 100 years, as well as our experiences and outstanding performances, giving continuity to the most successful practices and capturing new opportunities to create value in the market and in its operations”, added Francisco Garza Egloff, Chief Executive Officer of Arca Continental.
Corporacion Lindley S.A. is the only authorized bottler and distributor of trademarked brands from The Coca-Cola Company throughout Peru, including Coca-Cola, the world's most recognized beverage brand, and Inca Kola, the leading SSD in Peru. The company is a leading manufacturer of fruit pulp in Peru used for the production of its own fruit-juice beverages and for export.
Arca Continental produces, distributes and sells non-alcoholic beverages under The Coca-Cola Company brand, as well as snacks under the brands of Bokados in Mexico, Inalecsa in Ecuador and Wise in the US, and with the Coca-Cola Company, the dairy category in Ecuador under Tonicorp brands. With an 89 year history, Arca Continental is the second-largest Coca-Cola bottler in Latin America and one of the largest in the world. Within its Coca-Cola franchise territory, the company serves over 54 million consumers in northern and western Mexico, Ecuador and northern Argentina. The company’s shares trade on the Mexican stock exchange under the ticker symbol “AC”.