Spal Industrial Brasileira de Bebidas (Spal), a Brazil-based subsidiary of soft-drink bottler Coca-Cola Femsa, has agreed to purchase Brazil’s Vonpar for R$3.51m ($1.09bn).

Vonpar is one of Coca-Cola's largest private bottlers in Brazil.

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The acquisition will be made with a mix of cash, equity and debt.

With the deal, Coca-Cola Femsa’s volume in Brazil will be boosted by 25%, enabling the company to achieve 49% of the volume of the Coca-Cola system in the country.

The deal is subject to customary closing conditions and government approval.

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"The geographical location, together with the operating franchise opportunities allow us to capture significant synergies and economies of scale."

Coca-Cola Femsa director general John Santa Maria said: “We are confident that the talented group of professionals Vonpar and history of successful performance, coupled with its social and environmental commitment, will have a positive impact on our combined operations.

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“The geographical location, together with the operating franchise opportunities allow us to capture significant synergies and economies of scale.

“The payment of this transaction highlights our flexibility to carry out mergers and acquisitions, and ensures that our company will continue to maintain the financial flexibility to capture the next wave of growth in our industry and continue investing in our organic growth.”

Over a period of 12 months ending on 30 June, Vonpar sold 190 million unit cases of beverages,  including 23 million unit cases of beer.

The company currently has three bottling plants, five distribution centres and nearly 4,000 employees serving more than 15 million consumers in Brazil’s Rio Grande do Sul and Santa Catarina.

Image: The acquisition will raise Coca-Cola Femsa’s volume in Brazil by 25%. Photo: courtesy of Coca-Cola Femsa.