Coke, Coke Femsa to buy Unilever's soy beverage business (updated)

China Green (Holdings)

01/06/2016 15:17

(Adds details, background, shares) 
    June 1 (Reuters) - Coca-Cola Co  KO.N  and its largest 
bottler, Coca-Cola Femsa  KOFL.MX , said they agreed to buy 
Unilever's  ULVR.L  AdeS soy-based beverage unit for about $575 
million as the soft-drinks giant bolsters its portfolio of 
healthy and non-fizzy drinks. 
     AdeS, which is known for its soy-milk and fruit-juice mixed 
beverages, had revenue of $284 million in 2015. It sold 56.2 
million unit cases in the same period. 
    Founded in 1988 in Argentina, AdeS' drinks are sold in 
Brazil, Mexico, Argentina, Uruguay, Paraguay, Bolivia, Chile and 
Colombia, the companies said in a statement.  urn:newsml:reuters.com:*:nMKWwDF0la 
    Coke has been investing in building its non-carbonated 
drinks portfolio and is expanding beyond North America, its 
biggest market, where sales have been falling due to a consumer 
shift towards healthier beverages. 
    The company bought a 40 percent stake in Nigerian juice 
maker Chi Ltd in January and spent $400 million to buy 
multi-grain drinks maker China Culiangwang Beverages Holdings 
Ltd  0904.HK  in April last year.  
    Coke, whose non-fizzy brands include vitaminwater, Powerade 
and Minute Maid, said AdeS will be part of the non-carbonated 
beverage business that Coca-Cola Femsa shares with Coca-Cola in 
its franchise territories.  
    For Unilever, the sale is the latest in a string of 
divestitures aimed at moving away from slow-growing food brands 
in order to focus more on personal care businesses, which have 
higher margins and higher growth prospects.  
    The Anglo-Dutch company has sold businesses including 
Slim-Fast diet products, Ragu pasta sauces and Bifi meat snacks. 
    Coke shares were up slightly on the New York Stock Exchange, 
while those of Unilever were up 1.2 percent on the London Stock 
Exchange. Coke Femsa's shares were up 1.3 percent on the Mexican 
Stock Exchange. 
 
 (Reporting by Siddharth Cavale in Bengaluru and Martinne Geller 
in London; Editing by Saumyadeb Chakrabarty and Anil D'Silva) 
 ((Siddharth.cavale@thomsonreuters.com; within U.S. 
+1-646-223-8780; outside U.S. +91 80 6749 1130; Reuters 
Messaging: siddharth.cavale.thomsonreuters.com@reuters.net)) 
 
Keywords: ADES M&A/COCA COLA