Embonor Buys 50% of Plastics Maker

Coca-Cola Embonor, a bottler with operations in Bolivia and Chile, has purchased 50% of the outstanding shares of Envases CMF, a plastic container maker. Embonor paid CLP13.13bn ($26.3m) for the stake, which values the whole company at $56.2m, it says. The remaining 50% of the company is held by Embotelladora Andina, a Coca-Cola bottler that operates in Chile, Brazil and Argentina. Officials at Embonor declined to release details of the multiples paid for the company or how the transaction was financed. Officials at Envases could not immediately be reached for comment. The companies did not retain any advisors as they were comfortable in their knowledge of their respective businesses, an Embonor official says. Envases CMF manufactures plastic PET containers used for carbonated drinks, water, fruit drinks, and household cleaning products. The deal comes at a time of increasing consolidation in the carbonated drinks bottling business. This is particularly true in Mexico, a country that consumes more Coca-Cola than any other Latin American nation and is home to Coca-Cola Femsa (KOF), the largest bottler for Coca-Cola. In recent months KOF has acquired two regional independent bottlers in Mexico and industry observers expect more consolidation to take place going forward.