PANAMCO TO EXPAND INTO COSTA RICA THROUGH ACQUISITION OF COCA-COLA BOTTLER EMBOTELLADORA TICA; Tica Has 84% Share of Costa Rican Soft Drink Market.
MEXICO Mexico, city, Mexico
Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. CITY--(BUSINESS WIRE)--September 14, 1995--Panamerican Beverages, Inc. (NYSE NYSE
See: New York Stock Exchange :PB), the largest Coca-Cola bottler outside the U.S., today announced that it expects to acquire Embotelladora Tica, S.A. (Tica), the largest bottler of Coca-Cola and Canada Dry Canada Dry is a brand of soft drinks marketed by Dr Pepper/Seven Up, a unit of Cadbury-Schweppes. Canada Dry is best known for its ginger ale, but also manufactures a number of other soft drinks and mixers. products in Costa Rica Costa Rica (kŏs`tə rē`kə), officially Republic of Costa Rica, republic (2005 est. pop. 4,016,000), 19,575 sq mi (50,700 sq km), Central America. , for a total of US$75 million. Panamco currently has operations in Mexico, Brazil and Colombia.
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 Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. 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 Central America
A region of southern North America extending from the southern border of Mexico to the northern border of Colombia. It separates the Caribbean Sea from the Pacific Ocean and is linked to South America by the Isthmus of Panama. 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 Net Sales
The amount a seller receives from the buyer after costs associated with the sale are deducted.
This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight 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 United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . 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.