FEMSA announces agreement with AMMI, affiliate of Milenio Capital, to divest FEMSA’s plastics solutions operations
FEMSA (NYSE: FMX) has announced a definitive agreement to sell its plastics solutions operations to AMMI, an affiliate of Milenio Capital, for 3,165 million pesos on a cash-free, debt-free basis. The transaction, which is part of the FEMSA Forward plan announced in February 2023, is subject to regulatory approvals and other customary conditions. The deal is expected to close in the coming months.
FEMSA (NYSE: FMX) ha annunciato un accordo definitivo per vendere le sue operazioni di soluzioni plastiche a AMMI, un'affiliata di Milenio Capital, per 3.165 milioni di pesos su base priva di debito e senza contante. La transazione, che fa parte del piano FEMSA Forward annunciato a febbraio 2023, è soggetta ad approvazioni regolatorie e ad altre condizioni abituali. Si prevede che l'accordo si chiuda nei prossimi mesi.
FEMSA (NYSE: FMX) ha anunciado un acuerdo definitivo para vender sus operaciones de soluciones plásticas a AMMI, una afiliada de Milenio Capital, por 3,165 millones de pesos sobre una base libre de deuda y sin efectivo. La transacción, que forma parte del plan FEMSA Forward anunciado en febrero de 2023, está sujeta a aprobaciones regulatorias y otras condiciones habituales. Se espera que el acuerdo se cierre en los próximos meses.
FEMSA (NYSE: FMX)는 AMMI(미레니오 캐피탈의 자회사)에게 플라스틱 솔루션 사업을 31억 6500만 페소에 현금과 부채가 없는 조건으로 매각하는 최종 계약을 체결했다고 발표했습니다. 이 거래는 2023년 2월에 발표된 FEMSA Forward 계획의 일환으로, 규제 승인 및 기타 통상적인 조건에 따라야 합니다. 계약은 향후 몇 달 안에 완료될 것으로 예상됩니다.
FEMSA (NYSE: FMX) a annoncé un accord définitif pour vendre ses opérations de solutions plastiques à AMMI, une filiale de Milenio Capital, pour 3,165 millions de pesos sur une base sans dettes et sans liquidités. La transaction, qui fait partie du plan FEMSA Forward annoncé en février 2023, est soumise à des approbations réglementaires et à d'autres conditions habituelles. La conclusion de l'accord est attendue dans les mois à venir.
FEMSA (NYSE: FMX) hat eine endgültige Vereinbarung bekannt gegeben, seine Kunststofflösungsbetriebe an AMMI, eine Tochtergesellschaft von Milenio Capital, für 3.165 Millionen Pesos auf einer schuldenfreien und bargeldfreien Basis zu verkaufen. Die Transaktion, die Teil des FEMSA Forward Plans ist, der im Februar 2023 angekündigt wurde, unterliegt den behördlichen Genehmigungen und anderen üblichen Bedingungen. Es wird erwartet, dass der Deal in den kommenden Monaten abgeschlossen wird.
- Sale of plastics solutions operations for 3,165 million pesos strengthens company's cash position
- Strategic alignment with FEMSA Forward plan demonstrates successful execution of corporate strategy
- Divestment of operational asset could impact future revenue streams
Insights
This divestment of FEMSA's plastics solutions operations for
The transaction's valuation appears reasonable given current market conditions and the specialized nature of plastics operations. This divestment should improve FEMSA's balance sheet flexibility and operational focus, particularly on its core retail and beverage businesses. The cash proceeds could be used for debt reduction, reinvestment in core operations, or returned to shareholders.
While relatively modest compared to FEMSA's overall market cap, this transaction demonstrates management's commitment to portfolio optimization and shareholder value creation through strategic divestitures.
MONTERREY, Mexico, Oct. 28, 2024 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA” or the “Company”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announced it has reached a definitive agreement with AMMI, a leading holding company focused in the production of non-GMO corn and sustainable plastic packaging, affiliate of Milenio Capital, to divest FEMSA’s plastics solutions operations, for a total amount of
This transaction represents an additional step in the continued execution of the FEMSA Forward plan that was communicated in February of 2023. The transaction is subject to regulatory approvals and other customary conditions and is expected to close in the following months.
About FEMSA
FEMSA 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 a Proximity Americas Division operating OXXO, a small-format store chain, and other related retail formats, and Proximity Europe which includes Valora, our European retail unit which operates convenience and foodvenience formats. In the retail industry it also participates though a Health Division, which includes drugstores and related activities and Digital@FEMSA, which includes Spin by OXXO and Spin Premia, among other digital financial services initiatives. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume. Across its business units, FEMSA has more than 392,000 employees in 18 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index: S&P/BMV Total México ESG, among other indexes that evaluate its sustainability performance.
About AMMI
AMMI, headquartered in USA, is a solid business conglomerate with 59 years of expertise, focused in being the partner of choice for the largest players in the food and beverage industry. The company operates Millfoods, the world’s largest non-GMO corn production plant located in Mexico, with its products reaching 180 countries worldwide through important beer brands, among others. Millfoods also serves the food and animal feed sectors within North America and globally. In Central America and the Caribbean, AMMI leads the production of crown caps and sustainable plastic packaging for the beverage industry through its companies PLIHSA Crown Caps and PLIHSA Plastic Injection, respectively. The holding has a strong focus in sustainability, with the goal of becoming carbon neutral by 2030. Among AMMI’s other companies are PLIHSA Corporate Services and Equity S.A.
FAQ
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