FEMSA Comercio enters Convenience sector in Brazil through Joint Venture with Raízen
06 Agosto 2019 - 6:16PM
Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX;
BMV: FEMSAUBD) announced today that it has reached an agreement to
enter into a 50-50 Joint Venture with Raízen. Through this
agreement, FEMSA Comercio will acquire a 50% interest in Raízen
Conveniências. The full Enterprise Value of Raízen
Conveniências for the purpose of this transaction is R$1,122
Million, free of any debt or cash, and FEMSA Comercio’s 50%
interest is therefore valued at R$561 Million.
Raízen itself is a 50-50 Joint Venture between
Cosan and Shell. Raízen currently operates more than 6,200
Shell service stations in Brazil, and approximately one thousand of
them have a Select brand convenience store today. The stores
are franchised or licensed by Raízen to independent
operators. The Joint Venture agreed upon today is limited to
the convenience store business and excludes the fuel service
station operations.
The transaction announced today will create a
powerful platform for future growth. Raízen contributes its
broad service station footprint, where current penetration of
convenience stores is still low, and its vast experience operating
in Brazil. FEMSA Comercio will bring to bear its considerable
expertise as a developer and operator of small-format proximity and
convenience stores. Potential growth avenues include
increasing penetration of Select convenience stores at Raízen
service stations, as well as developing successful value
propositions for stand-alone stores under the OXXO brand.
Daniel Rodríguez Cofre, FEMSA Comercio’s CEO,
commented:
“We have been looking at Brazil as a compelling market for
small-format retail for a long time. The transaction
announced today combines the right asset and the right partner for
us, with the right structure and the right timing. We welcome
the opportunity to join forces with a world-class company like
Raízen, and we are excited by the potential and the challenge that
this new venture represents for FEMSA Comercio.”
The transaction is subject to customary
regulatory approvals and is expected to close during the second
half of 2019.
About FEMSA ComercioFEMSA
Comercio is a company that creates economic and social value in the
countries where it has presence. It operates different small-format
store chains in Mexico, Colombia, Chile, Peru and Ecuador, among
which there are OXXO proximity stores, drugstores under the brands
YZA, Farmacon, Moderna, Cruz Verde, Fybeca and SanaSana, and Maicao
beauty stores. It also operates service stations in Mexico under
the OXXO GAS brand. Through its business units, FEMSA Comercio has
more than 180,000 employees and serves more than 13 million
consumers every day.
About FEMSAFEMSA 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 FEMSA Comercio, comprising a Proximity Division
operating OXXO, a small-format store chain, a Health Division,
which includes drugstores and related activities, and a Fuel
Division, which operates the OXXO GAS chain of retail service
stations. In the beverage industry, it participates through
Coca-Cola FEMSA, a public bottler of Coca-Cola products; and in the
beer industry, as a shareholder of HEINEKEN, a brewer with
operations in over 70 countries. Additionally, through its
Strategic Businesses unit, it provides logistics, point-of-sale
refrigeration solutions and plastics solutions to FEMSA's business
units and third-party clients. Through its business units, FEMSA
has more than 295,000 employees in 13 countries. FEMSA is a member
of the Dow Jones Sustainability MILA Pacific Alliance, the
FTSE4Good Emerging Index and the Mexican Stock Exchange
Sustainability Index, among other indexes that evaluate is
sustainability performance.
Media Contact
(52) 555-249-6843
comunicacion@femsa.com.mx
www.femsa.com
Investor Contact
(52) 818-328-6167
investor@femsa.com.mx
www.femsa.com/inversionista
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