FEMSA announces agreement with TRAXIÓN to divest certain of FEMSA’s logistics operations
FEMSA (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) has announced a definitive agreement with Grupo Traxión to divest certain logistics operations of its Solistica business. The transaction includes:
- Transportation management operations in Mexico
- Contract logistics operations in Mexico, Colombia, and Brazil
The deal, valued at approximately 4,060 million Mexican pesos, excludes FEMSA's LTL operations in Brazil. This divestment aligns with the FEMSA Forward plan announced in February 2023. The transaction is subject to regulatory approvals and other conditions, with closure expected in the coming months.
FEMSA (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) ha annunciato un accordo definitivo con Grupo Traxión per disinvestire alcune operazioni logistiche del suo business Solistica. La transazione include:
- Operazioni di gestione dei trasporti in Messico
- Operazioni di logistica contrattuale in Messico, Colombia e Brasile
L'accordo, del valore di circa 4.060 milioni di pesos messicani, esclude le operazioni LTL di FEMSA in Brasile. Questo disinvestimento è in linea con il piano FEMSA Forward annunciato a febbraio 2023. La transazione è soggetta ad approvazioni normative e altre condizioni, con la chiusura prevista nei prossimi mesi.
FEMSA (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) ha anunciado un acuerdo definitivo con Grupo Traxión para desinvertir ciertas operaciones logísticas de su negocio Solistica. La transacción incluye:
- Operaciones de gestión de transporte en México
- Operaciones de logística contratada en México, Colombia y Brasil
El acuerdo, valorado en aproximadamente 4,060 millones de pesos mexicanos, excluye las operaciones LTL de FEMSA en Brasil. Esta desinversión está en línea con el plan FEMSA Forward anunciado en febrero de 2023. La transacción está sujeta a aprobaciones regulatorias y otras condiciones, con la cerradura esperada en los próximos meses.
FEMSA (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB)가 Grupo Traxión과 최종 계약을 발표하여 Solistica 비즈니스의 특정 물류 운영을 매각합니다. 이번 거래에는 다음이 포함됩니다:
- 멕시코의 운송 관리 운영
- 멕시코, 콜롬비아 및 브라질의 계약 물류 운영
이번 거래는 약 4,060백만 멕시코 페소의 가치를 지니며, FEMSA의 브라질 LTL 운영은 제외됩니다. 이번 매각은 2023년 2월 발표된 FEMSA Forward 계획과 일치합니다. 거래는 규제 승인 및 기타 조건에 따라 진행되며, 향후 몇 달 내에 마무리될 것으로 예상됩니다.
FEMSA (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) a annoncé un accord définitif avec Grupo Traxión pour céder certaines opérations logistiques de son activité Solistica. La transaction comprend :
- Opérations de gestion des transports au Mexique
- Opérations de logistique contractuelle au Mexique, en Colombie et au Brésil
L'accord, d'une valeur d'environ 4 060 millions de pesos mexicains, exclut les opérations LTL de FEMSA au Brésil. Cette cession s'inscrit dans le cadre du plan FEMSA Forward annoncé en février 2023. La transaction est soumise à des approbations réglementaires et à d'autres conditions, avec une clôture prévue dans les mois à venir.
FEMSA (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) hat eine abschließende Vereinbarung mit Grupo Traxión bekannt gegeben, um bestimmte Logistikoperationen ihres Solistica-Geschäfts zu veräußern. Die Transaktion umfasst:
- Transportmanagement-Operationen in Mexiko
- Vertragslogistik-Operationen in Mexiko, Kolumbien und Brasilien
Das Geschäft, das mit etwa 4.060 Millionen mexikanischen Pesos bewertet wird, schließt die LTL-Operationen von FEMSA in Brasilien aus. Diese Veräußerung stimmt mit dem FEMSA Forward Plan überein, der im Februar 2023 angekündigt wurde. Die Transaktion unterliegt behördlichen Genehmigungen und weiteren Bedingungen, mit einer Abschlussfrist, die in den kommenden Monaten erwartet wird.
- Divestment of certain logistics operations for approximately 4,060 million Mexican pesos
- Alignment with FEMSA Forward strategic plan
- Potential for improved focus on core business operations
- Reduction in FEMSA's logistics footprint in key markets
- Potential loss of revenue streams from divested operations
Insights
This transaction marks a significant move for FEMSA, aligning with its FEMSA Forward strategic plan announced in February 2023. The divestiture of certain logistics operations to Grupo Traxión for
Key points to consider:
- The sale includes transportation management in Mexico and contract logistics in Mexico, Colombia and Brazil, but excludes LTL operations in Brazil.
- This move likely aims to streamline FEMSA's operations and focus on core businesses, potentially improving overall efficiency and profitability.
- The cash influx from the sale could be used to reduce debt, invest in growth areas, or return value to shareholders.
- While the divestiture may reduce FEMSA's revenue in the short term, it could lead to improved margins and a more focused business model in the long run.
Investors should watch for the transaction's closure and any updates on how FEMSA plans to allocate the proceeds, as well as any shifts in the company's operational metrics following the divestiture.
This divestiture represents a strategic shift in FEMSA's business model, potentially impacting its market positioning and competitive landscape. Key considerations for investors include:
- Industry trends: The sale aligns with a broader trend of companies focusing on core competencies and divesting non-core assets to enhance shareholder value.
- Market reaction: FEMSA's stock price may see short-term volatility as the market assesses the impact of this transaction on the company's future earnings and growth potential.
- Competitive dynamics: The sale strengthens Grupo Traxión's position in the logistics sector, potentially altering the competitive landscape in Mexico and Latin America.
- Future outlook: This move may signal FEMSA's intent to pursue further divestitures or acquisitions in line with its strategic plan, which could present both opportunities and risks for investors.
Investors should closely monitor FEMSA's performance metrics post-divestiture, particularly focusing on profitability ratios and return on invested capital, to gauge the effectiveness of this strategic decision.
MONTERREY, Mexico, Oct. 10, 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 Grupo Traxión, S.A.B. de C.V (BMV: TRAXIONA), a leading transportation and logistics company based in Mexico, to divest certain of FEMSA’s logistics operations doing business as Solistica. The transaction includes FEMSA’s transportation management operations in Mexico, as well as its contract logistics operations in Mexico, Colombia and Brazil. The transaction does not include FEMSA’s LTL (less-than-truckload) operations in Brazil.
Total consideration for this transaction will be of approximately
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 TRAXIÓN
TRAXIÓN is the leading transportation and logistics company in Mexico. It offers a one-stop solution through the broadest and most diverse service portfolio in the country. TRAXIÓN’s platform operates three main business segments: Mobility of Cargo, Logistics and Technology, and Mobility of Personnel. The Company has 10 highly recognized brands for their leadership in different sector niches. TRAXIÓN was founded in 2011 and ended the 2Q24 with an average fleet of 11,043 power units, 709,998 square meters of 3PL logistic warehousing space, national reach, more than 1,300 clients, and over 22,000 employees. TRAXIÓN’s most important competitive advantages include: an experienced and committed management team, the use of the latest technology, being the only consolidator in a highly fragmented industry and the only institutional company in a sector dominated by family-owned companies, a diverse portfolio comprised of premium services, long-term partnerships with clients and suppliers, and an anticipated market outlook.
FAQ
What logistics operations is FEMSA (FMX) divesting in the agreement with TRAXIÓN?
How much is TRAXIÓN paying for FEMSA's (FMX) logistics operations?
Is FEMSA (FMX) selling all of its logistics operations to TRAXIÓN?
When is the FEMSA (FMX) and TRAXIÓN logistics deal expected to close?
