Coca-Cola FEMSA and Grupo Fomento Queretano Successfully Merge Their Bottling Operations

Coca-Cola FEMSA, S.A.B. de C.V. KOF and Grupo Fomento Queretano, S.A.P.I. de C.V. and its shareholders announce the successful merger of Grupo Fomento Queretano's beverage operation with Coca-Cola FEMSA. 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.