FEMSA Forward: Announcing divestment of FEMSA’s minority position in Jetro Restaurant Depot

Rhea-AI Summary

FEMSA has announced the divestment of its minority investment in Jetro Restaurant Depot and related entities. The total cash consideration for the deal is US$1,400 million, with US$467 million payable on closing in Q2 2023.

Positive

• FEMSA will receive total cash consideration of US$1,400 million

Negative

• None.

MONTERREY, Mexico, May 31, 2023 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA” or the “Company”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announced today that consistent with its FEMSA Forward strategy as communicated on February 15, 2023, it has entered into a definitive agreement to divest its minority investment in Jetro Restaurant Depot and related entities (“JRD”).

Subject to customary closing conditions, FEMSA will receive total cash consideration of US$1,400 million, with approximately US$467 million payable on closing in the second quarter of 2023, and the remainder payable over two years.

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; and in the beer industry, as a shareholder of Heineken, one of the world’s leading brewers with operations in over 70 countries. FEMSA also participates in the logistics and distribution industry through its Strategic Business Unit, which additionally provides point-of-sale refrigeration and plastic solutions to its business units and third-party clients. Across its business units, FEMSA has more than 350,000 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.

FAQ

What is FEMSA divesting?

FEMSA is divesting its minority investment in Jetro Restaurant Depot and related entities.

How much cash consideration will FEMSA receive?

FEMSA will receive a total cash consideration of US$1,400 million.

When will the closing of the deal take place?

The closing of the deal is expected to take place in the second quarter of 2023.

How will the cash consideration be paid?

Approximately US$467 million will be payable on closing in Q2 2023, and the remainder will be payable over two years.