US investor Mill Point Capital has enlisted several firms to acquire the refrigeration and food service equipment subsidiaries of Mexican beverage bottler FEMSA – including the entire Latin American portfolio of those companies – for 8 billion Mexican pesos (US$500 million).
Mill Point Capital relied on three Schulte Roth & Zabel LLP offices, Creel, García-Cuéllar, Aiza y Enriquez, SC in Mexico City, Argentine firm Beccar Varela, Aguilar Castillo Love’s La Paz office, two Mattos Filho offices, three Philippi Prietocarrizosa Ferrero DU & Uría teams, Pérez Bustamante & Ponce (PBP) in Quito, Ferrere (Uruguay) and D’Empaire in Caracas.
Two Freshfields Bruckhaus Deringer LLP offices and Galicia Abogados in Mexico City advised FEMSA in the sale of refrigeration business Imbera and its food equipment subsidiary Torrey, which was announced on 17 July. The value remains confidential.
Closing is subject to certain regulatory approvals.
As part of this transaction, Mill Point will combine Imbera and Torrey’s respective businesses and operate them under its AeriTek Global brand, which also manages commercial refrigeration and food equipment services. The incorporation will bring AeriTek’s annual production capacity to over 1 million refrigeration units and 13 sales offices globally. The deal will also allow for the expansion of its manufacturing capabilities, allowing it to reach more customers globally and boosting its profits.
Mill Point Capital is based in New York and invests in lower-middle market businesses predominantly in the industrial, business services and IT services sectors, with some US$2.5 billion assets under management.
Headquartered in Monterrey, FEMSA began its operations in 1890 and is the largest convenience store chain operator in Mexico and one of the top Coca-Cola bottlers worldwide. The company runs 56 bottling plants, 251 distribution centres and has operations across Latin America including Argentina, Brazil, Colombia, and others.
In March, FEMSA launched an accelerated share repurchase agreement to buy back US$400 million of its American depositary shares. A few months before this, the company made a five-day tender offer to buy back existing debt which was set to mature in 2043.
Counsel to Mill Point Capital
Philippi Prietocarrizosa Ferrero DU & Uría (Chile)
Partner Federico Grebe and associates Josefina Joannon, Macarena Gaitán, Jose Pedro Ariztía, Antonio Valenzuela, Juan Ignacio Rosales, Florencia Portales, Daniela Ahumada, Camila Betancourt, Valentina Bawarshi and Constanza Azocar in Santiago.
Philippi Prietocarrizosa Ferrero DU & Uría (Colombia)
Partners Martín Acero and Juan Carlos Rocha, and associates Juan Guillermo Nur, Santiago Carcache and Manuel Monsalve in Bogotá.
Philippi Prietocarrizosa Ferrero DU & Uría (Peru)
Partners Rafael Boisset and Milagros Pastor, and associate Daniela Forton in Lima.
