Coca-Cola FEMSA and Grupo Fomento Queretano successfully merge their bottling operations

 Mexico City, Mexico – May 07, 2012 – Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL; NYSE:

KOF) (“Coca-Cola FEMSA” or the “Company”), the largest Coca-Cola franchise bottler in the world,

and Grupo Fomento Queretano, S.A.P.I. de C.V. (“Grupo Fomento Queretano”) and its shareholders

announce the successful merger of Grupo Fomento Queretano’s beverage operation with Coca-Cola


 This transaction received all necessary approvals, including the approval of the Comisión Federal de

Competencia , the Mexican antitrust authority, and The Coca-Cola Company. Subsequently, Coca-Cola

FEMSA held an extraordinary shareholders meeting on May 4, 2012, at which the Company’s

shareholders approved this merger.

The aggregate enterprise value of this transaction is Ps. 6,600 million, which at the time of the

announcement of this merger agreement represented an EV/EBITDA multiple of approximately 9.7

times. As a result of the completion of the due diligence process, no material adjustment was recorded,

and Grupo Fomento Queretano’s shareholders received approximately 45.1 million newly issued KOF

series L shares. The Company assumed Ps. 1,221 million in net debt.

“We are pleased to announce the successful merger of Grupo Fomento Queretano’s beverage operation

with Coca-Cola FEMSA. We would like to thank everybody involved in this transaction, including our

new partner–with whom we share an aligned vision of economic and social value creation–for their

effort and hard work to reach this important milestone for our company. These new territories represent a

strategic link between our existing operations in Mexico. The culmination of this transaction will enable

us to leverage our mutual expertise in the beverage industry, our talented pool of professionals, and the

strong brand equity of our products, while complementing our prospects for the continued growth of our

business into the future. In addition, through this transaction, we increase our stake in PIASA, one of the

most important and efficient participants in the Mexican sugar industry, to more than 26 percent.

Through the three mergers we have closed over the past several months, we have enjoyed the privilege of

expanding our family with important new members, whose track record and entrepreneurial legacy speak

for themselves. Looking forward, we will continue to operate our business, capitalizing on the proven

management capabilities and transparency that attracted these families to our company as an investment

vehicle,” said Carlos Salazar Lomelin, Chief Executive Officer of the Company.

 Coca-Cola FEMSA will start integrating the results of Grupo Fomento Queretano as of May, 2012.

Seale & Associates, Inc. and White & Case S.C. acted as exclusive financial and legal advisors,

respectively, to Grupo Fomento Queretano on this transaction.

Ritch Mueller and Deloitte Galaz, Yamazaki, Ruiz Urquiza, S.C. acted as legal and tax advisors,

respectively, to Coca-Cola FEMSA on this transaction.

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