Private Equity Firms Warburg, Kelso Bid for Femsa’s $5 Billion US Envoy Unit

Mexico’s Coca-Cola bottler Femsa is in talks to sell a US packaging and food services business to private the equity firms

Photo: Susana González/Bloomberg
By Kamaron Leach - Crystal Tse
August 16, 2023 | 08:55 AM

Bloomberg — Mexican Coca-Cola bottler Femsa (FEMSAUBD) is in talks to sell a US packaging and food services business to private equity firms Warburg Pincus and Kelso & Co. for about $5 billion, according to people with knowledge of the matter.

Kelso would do the deal through portfolio company BradyIFS, said the people, who asked not to be identified discussing private information.

VIEW +
Number of M&As In Latin America Falls By 20% In First Half

Representatives for Femsa, Warburg Pincus and Kelso declined to comment.

Monterrey, Mexico-based Femsa announced a strategic review in February for some non-core units, including its stake in Dutch brewer Heineken NV as well as Envoy Solutions, according to a statement.

PUBLICIDAD

Envoy Solutions, based in Glenview, Illinois, provides a range of packaging and food services, from corrugated boxes to facilities cleaning, according to its website.

Femsa, which distributes and bottles beverages and operates convenience stores, acquired 20% of Heineken in 2010 before trimming its holding. It acquired Switzerland’s Valora, which operates about 2,700 cafes and convenience stores, for as much as $1.2 billion last year to expand in Europe. Femsa is shorthand for Fomento Economico Mexicano SAB.

VIEW +
Mexican Trucking Powerhouse Traxion Dips on $253 Million Share Sale

--With assistance from Michelle F. Davis and Andrea Navarro.

Read more at Bloomberg.com