Mexico City, Jan. 3 - Mexican Coca-Cola bottler Embotelladoras Arca said it has reached a preliminary agreement to buy a controlling stake in snacks manufacturer Bokados.
In a filing Tuesday with the Mexican Stock Exchange, Arca said the agreement will give it a majority stake in the snacks company, with the right to increase that to 100% in the future. Terms of the acquisition weren't disclosed.
Arca said Bokados is a major supplier in northeastern Mexico of snacks such as corn chips, potato chips, and peanuts, delivering to 85,000 establishments with sales over 500 million pesos ($46 million) in 2006.
Monterrey-based Arca said the planned acquisition is part of its strategy of entering new business lines where buying patterns and habits are similar to those of soft-drinks.
Arca said it plans to expand Bokados' presence in areas served by Arca in northern Mexico, as well as enter the U.S. Hispanic market through its existing export channels.
Arca bottles and distributes Coca-Cola products, as well as its own and third-party brands. The company had sales of MXN12.47 billion in the first nine months of 2006. Arca shares were among the local market's top performers in 2006, rising 84% to end the year at MXN44.00.