Mexican soft-drink bottler Arca Continental has agreed to acquire two snack food firms –US-based Wise Foods and Ecuador-based Alimenticias Ecuatorianas, for an undisclosed amount.
Arca Continental will acquire Wise Foods from US-based private equity firm Palladium Equity Partners. The transaction is subject to customary regulatory approvals.
The acquisition of Wise Foods and Alimenticias Ecuatorianas is expected strengthen Arca Continental's snack business in Mexico, which produces snacks under Bokados brand. The integration of the two companies with Arca Continental's snack business will result in net sales of nearly $400m in 2013.
Arca Continental chief executive officer Francisco Garza-Egloff said that the acquisitions will expand the company's presence in both the markets, allowing it to develop new growth opportunities.
"Both provide a solid platform that will bring innovation to our portfolio, product and brand expansion as well as beneficial synergies and the sharing of best practices," Garza-Egloff added.
Wise Foods, which was acquired by Palladium Equity Partners in 2000 for $96m, has manufacturing operations in Berwick, Pennsylvania, and employs 850 people. The company produces nearly 40,000 tons of snacks per year under brands such as Wise, Cheez Doodles and Moore's. It has presence in 21 states in the US.
Inalecsa produces salty, sweet and savory snacks under brands such as Inacake, Tigreton, Tortolines, Riskos and Tornaditos, and has a workforce of 400. The company has two production facilities in Guayaquil and Quito that produce nearly 8,000 tons of products annually.
Arca Continental, which was established in through the merger of Embotelladoras Arca and Grupo Continental, produces, distributes and sells non-alcoholic beverages under The Coca-Cola Company brand.
