Bottler of Coca-Cola products, Coca-Cola FEMSA has signed an agreement to acquire Vonpar, a privately owned bottler in the Brazilian Coca-Cola system for an aggregate enterprise value of R$3.5bn ($960m) and an approximate equity value of R$3.57bn ($979m).

The deal was signed by Coca-Cola FEMSA’s Brazilian subsidiary Spal Industria Brasileira de Bebidas SA (Spal).

The deal amount is subject to confirmation on debt, cash and other customary adjustments.

"We are very excited to continue consolidating our leadership position in Brazil."

In the last twelve months, ending 30 June, Vonpar sold 190 units of beverages, which included 23 million units of beer.

As per the preliminary estimation, the synergies to be captured due to logistic reconfiguration, manufacturing optimisation and its commercial practices within the next 18 to 24 months are approximately R$65m ($17.8m) at the earnings before interest, tax, depreciation and amortisation (EBITDA) level.

Vonpar’s footprint is considered to be an ideal geographic fit bordering Coca-Cola FEMSA’s operations in the state of Paraná, in the south of Brazil.

Operating in the states of Rio Grande do Sul and Santa Catarina, this franchise has three bottling plants and five distribution centres serving more than 15 million consumers.

With this deal, Coca-Cola FEMSA will be able to serve approximately 88 million consumers or 43% of Brazil's population.

Coca-Cola FEMSA CEO John Santa Maria said: “We are very excited to continue consolidating our leadership position in Brazil.

"We are confident that Vonpar’s talented group of professionals, history of successful performance, coupled with its social and environmental commitment, will have a positive impact on our combined operations.”

The transaction has been approved by the board of directors of Coca-Cola FEMSA and is subject to customary closing conditions.

Coca-Cola FEMSA will also seek the approval of The Coca-Cola Company for this acquisition.