FEMSA Comercio To Buy Majority Stake In Socofar For Enterprise Value Of $998 Mln

(RTTNews) - FEMSA Comercio, S.A. de C.V. (FMX) said that it has agreed to acquire a majority equity stake in Grupo Socofar, South American drugstore operator based in Santiago, Chile.

FEMSA Comercio is acquiring 60% of the equity of Socofar funded from cash-on-hand. The enterprise value of the company is US$998 million, and for the last twelve months ended June 2015, Socofar revenues were US$1.836 billion.

The current controlling shareholders of the equity of Socofar will remain as owners of 40% of the equity.

FEMSA Comercio noted that it will exercise day to day operating control, and the current controlling shareholders will appoint two members to the Board, including the role of Chairman so that they may continue to provide leadership and operating experience to the organization.

Founded in 1949, Socofar today operates 643 drugstores and 154 beauty stores throughout Chile under the Cruz Verde and Maicao banners, respectively. In addition, Socofar controls Farmasanitas in Colombia that operates over 150 pharmacies, in-site pharmacies and dispensary units under the Cruz Verde/Farmasanitas banners.

The transaction is pending customary regulatory approvals, and is expected to close during the fourth quarter of 2015.