PANAMCO TO EXPAND INTO COSTA RICA THROUGH ACQUISITION OF COCA-COLA BOTTLER EMBOTELLADORA TICA; Tica Has 84% Share of Costa Rican Soft Drink Market.
The acquisition of Tica makes Costa Rica the fourth country to join the growing Panamco family, said Francisco Sanchez-Loaeza, chairman and chief executive officer of Panamco. Tica has a proven track record, experienced management team, strong market share and solid growth prospects. We intend to move quickly and aggressively in Costa Rica to ensure Tica benefits from the added resources and experience of Panamco. By acquiring new franchises, growing market share at our existing operations and through continued purchase of minority interests in our subsidiaries, Panamco is committed to building on its leadership position in Latin America and delivering growth to our shareholders.
Tica distributes Coca-Cola products throughout 85% of Costa Rica and Canada Dry products throughout 100% of the country, representing a total population of approximately 3.3 million. Tica has approximately 84% market share of soft drink sales in Costa Rica, which has one of the youngest Central American populations. In addition to the Coca-Cola and Canada Dry franchise businesses, Tica produces plastic bottles. Of the total purchase price of $75 million, $60 million is for Tica's soft drink operations and $15 million is for Tica's plastic bottles business. For Tica's fiscal year, September 30, 1994 through September 30, 1995, the Company's net sales are estimated to be over $76 million. Net income is projected to be approximately $7.3 million and soft drink volumes are expected to be in excess of 21 million unit cases.
Panamco expects to begin overseeing day-to-day management of Tica's operations on October 1, 1995 and begin consolidating Tica's results with all of Panamco's as of that date. The payment date for the acquisition, which is subject to the approval of The Coca-Cola Company and certain other conditions, is November 1, 1995.
Panamco is the largest soft drink bottler in Latin America and the world's largest bottler of soft drink products of The Coca-Cola Company outside the United States. The Company produces and distributes substantially all Coca-Cola soft drink products along with bottled water and other beverages in its franchise territories in Mexico, Brazil and Colombia.
CONTACT: Christian Philco
Panamerican Beverages, Inc.
Paul Verbinnen/David Reno
Sard Verbinnen & Co.
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|Date:||Sep 14, 1995|
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