The Mexican bottler and retailer, Femsa signed a non-binding memorandum of understanding to acquire a minority stake in the US self-service chain Jetro Restaurant Depot, for US $750 million.
The agreement also contemplates that the firms will form a joint venture to bring the Jetro Restaurant Depot business model to Mexico and other Latin American markets.
The company expects the transaction, which will be subject to the approval of the authorities, to be closed during the fourth quarter of this year.
Jetro Restaurant Depot is one of the leading firms in the wholesale self-service segment for restaurants and small businesses in the US, with more than 130 stores in Jetro Cash and Carry and Restaurant Depot formats. In 2018 they exceeded US $ 10 billion in sales.
Femsa believes that this operation fits with the intention of the firm to invest in growth opportunities to leverage its capabilities in different markets. “This transaction will allow Femsa to participate in the cash & carry segment (wholesale self-service) in the United States,” the company said.
At the beginning of September, Femsa reported its plan to invest more than 61,000 million pesos (US $ 3.120 billion) and create around 41,000 jobs in Mexico over the next three years.
Femsa, which manages Coca-Cola’s largest franchise bottler and Oxxo convenience stores, has operations throughout Latin America. Its total capital expenditures in 2018 were 24,300 million pesos (US $1.240 billion).