FEMSA Sells Stake in Restaurant Depot
Mexican beverage and retail giant FEMSA has announced the sale of its 1.4 billion stake in Restaurant Depot, a restaurant supply chain. The sale is part of FEMSA’s strategy to focus on its core business and reduce its debt.
Background of FEMSA
FEMSA is a Mexican multinational beverage and retail company. It is the largest independent Coca-Cola bottler in the world and the second-largest shareholder of Heineken International. FEMSA also operates the largest convenience store chain in Mexico, OXXO, and the largest pharmacy chain in Mexico and Colombia, Farmacias.
FEMSA’s Investment in Restaurant Depot
In 2017, FEMSA acquired a majority stake in Restaurant Depot, a restaurant supply chain. The company operates more than 200 stores in the United States and Canada. Restaurant Depot is a wholesale cash-and-carry business that provides foodservice operators with a wide variety of products, including fresh produce, meat, seafood, dairy, frozen foods, and non-food items.
FEMSA’s Decision to Sell Stake in Restaurant Depot
FEMSA has decided to sell its stake in Restaurant Depot as part of its strategy to focus on its core business and reduce its debt. The company has been looking to reduce its debt since the beginning of 2021. FEMSA has also been looking to focus on its core business, which includes its beverage and retail operations.
Details of the Sale
FEMSA has sold its 1.4 billion stake in Restaurant Depot to an undisclosed buyer. The sale was completed on May 31, 2023. The sale was valued at $1.2 billion.
Impact of the Sale
The sale of FEMSA’s stake in Restaurant Depot is expected to have a positive impact on the company’s financials. The sale will reduce FEMSA’s debt and allow the company to focus on its core business. The sale will also provide FEMSA with additional funds to invest in its core operations.
Future Outlook
FEMSA is expected to continue to focus on its core business and reduce its debt. The company is also expected to continue to invest in its core operations and expand its presence in the beverage and retail markets. FEMSA is also expected to continue to explore opportunities to expand its business in the future.