FEMSA in Merger of Envoy Solutions With BradyIFS

Cleary Gottlieb represented Fomento Económico Mexicano S.A.B. de C.V. (FEMSA) in the closing of a cash and equity transaction to combine Envoy Solutions and BradyIFS, effective as of October 31, 2023.

Based on the definitive agreement entered into on August 29, 2023, FEMSA has received approximately $1.7 billion in cash and retains approximately 37% ownership of the combined entity, which is expected to have pro forma revenues of approximately $5 billion. Kelso & Company (the current owner of BradyIFS), funds managed by Warburg Pincus LLC, and the current minority shareholders of Envoy Solutions own the remaining interest in the combined entity.

The transaction allows Envoy Solutions and BradyIFS to combine their strengths and complementary footprints to create a strong customer-focused platform to effectively provide its customers with high-value solutions, and its supplier partners with excellent market reach, delivering more products and solutions in more locations across the United States.

FEMSA is a leading Mexican company that participates in the logistics and distribution industry by providing point-of-sale refrigeration and plastic solutions to its business units and third-party clients; in the retail industry through the operation of OXXO, a small-format store chain, and other convenience and foodvenience formats; and in the beverage industry through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume.

For more information, please see the press release here.