Mill Point Capital Completes Acquisition of AeriTek Global LLC

Rhea-AI Summary

Mill Point Capital has completed its acquisition of AeriTek Global from FEMSA (NYSE: FMX) through a corporate carve-out transaction. The deal involves FEMSA's commercial refrigeration and foodservice equipment businesses, operating as Imbera and Torrey. This transaction establishes AeriTek as an independent manufacturer, designer, and distributor of commercial refrigeration and foodservice equipment products. Mill Point Capital, based in New York City, has demonstrated expertise in complex transactions, having completed 17 corporate divestitures.

Positive

• Successful completion of strategic divestiture for FEMSA
• Establishes AeriTek as an independent entity with focused business operations

Negative

• Reduction in FEMSA's business portfolio diversity
• Potential loss of synergies from integrated operations

Insights

Financial Analyst

The divestiture of Imbera and Torrey marks a strategic move for FEMSA, streamlining its portfolio by offloading non-core businesses. The sale of these commercial refrigeration and foodservice equipment units to Mill Point Capital suggests FEMSA's focus on strengthening its core retail and beverage operations. While the transaction value remains undisclosed, this move aligns with FEMSA's broader strategy of portfolio optimization announced in 2022. The impact on FEMSA's balance sheet and operational efficiency should become clearer in upcoming financial reports. For investors, this transaction represents FEMSA's commitment to simplifying its business structure and potentially improving capital allocation efficiency.

KENNESAW, Ga.--(BUSINESS WIRE)-- An affiliate of Mill Point Capital LLC ("Mill Point Capital"), a New York City-based private equity firm, announced today the completion of its previously announced acquisition of the commercial refrigeration and foodservice equipment businesses of Fomento Económico Mexicano, S.A.B. de C.V. (NYSE: FMX) (“FEMSA”), doing business as Imbera and Torrey (collectively AeriTek Global LLC, “AeriTek” or the “Company”), in a single corporate carve-out transaction. The successful closing of this complex, cross-border corporate carve-out transaction establishes AeriTek as a standalone, leading manufacturer, designer and distributor of commercial refrigeration and foodservice equipment products. Mill Point has completed 17 corporate divestitures, reflecting the firm’s expertise and experience in executing complex transactions.

About AeriTek Global

Since its inception in 1941, AeriTek is a trailblazer in the commercial refrigeration and foodservice equipment markets, doing business under the Imbera and Torrey brands. The Company offers an expansive portfolio of highly customized products, setting itself apart through relentless product innovation and pursuit of best-in-class quality. Additionally, AeriTek is an industry leader in sustainability standards and aftermarket services. AeriTek is headquartered in Kennesaw, GA. For more information, please visit www.aeritekglobal.com.

About Mill Point Capital LLC

Mill Point Capital LLC is a private equity firm focused on control investments in lower-middle market companies across the Business Services, Industrials and IT Services sectors throughout North America. Mill Point’s experienced team of investors, Executive Partners and Functional Experts seek portfolio company value enhancement through rigorous implementation of transformative strategic initiatives and operational improvements. Mill Point is based in New York, NY. For more information, please visit www.millpoint.com.

About FEMSA

FEMSA (NYSE: FMX) 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, a European retail unit which operates convenience and foodvenience formats. In the retail industry it also participates through 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241104550880/en/

Jiaeh Kim

info@millpoint.com

212-416-5800

Source: Mill Point Capital LLC

FAQ

What businesses did FEMSA (FMX) sell to Mill Point Capital?

FEMSA sold its commercial refrigeration and foodservice equipment businesses, operating as Imbera and Torrey (now collectively known as AeriTek Global ), to Mill Point Capital.

When did Mill Point Capital complete the acquisition of AeriTek from FEMSA (FMX)?

Mill Point Capital completed the acquisition of AeriTek Global from FEMSA through a corporate carve-out transaction, as announced in the press release.

What type of transaction was used for FEMSA's (FMX) sale of AeriTek?

The transaction was structured as a single corporate carve-out, separating AeriTek Global from FEMSA to establish it as a standalone company.

How many corporate divestitures has Mill Point Capital completed?

Mill Point Capital has completed 17 corporate divestitures, demonstrating their expertise in executing complex transactions.