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HarbourVest Partners and Investment Syndicate Close Acquisition of Leading Mexican Pepsi Bottler
BOSTON — 30 December 1998 — HarbourVest Partners, LLC, investing with Advent International, BancBoston and current management, announced today that it has completed the acquisition of Grupo Embotelladores del Sureste, S.A. de C.V. (GESA). GESA, which operates in the Southern Mexican states of Oaxaca and Chiapas, is one of the largest Pepsi bottlers in Mexico. The investor group will be represented on the board of directors by Juan Carlos Torres, Managing Director of Advent International."We are enthusiastic about this investment not only because GESA is a leading Pepsi bottler, but also because Pepsi has traditionally been the leading soft-drink vendor in Mexico. In addition, GESA should increase its cash flow and market share as it embarks on a mission to rationalize and reinvigorate its operations and launches a marketing campaign that leverages its Frito-Lay snacks market share," according to Rob Wadsworth, Managing Director of HarbourVest. The demographics of the Mexican market also provide a compelling story. "With favorable demographics and soft drink consumption patterns, Mexico is the largest soft drink market for Pepsi and Coca-Cola outside the USA, both in terms of volume and per capita consumption," comments Mr. Wadsworth.
GESA is engaged in the bottling and distribution of carbonated soft drinks, isotonic beverages and water. The company has amassed an impressive portfolio of beverage franchises, including its flagship brand, Pepsi. The company also bottles and distributes its own flavored and cola brands (El Rey) and bottled water (Acqua di Roma) as well as several popular Mexican flavored carbonated drinks.
GESA's operations consist of buying concentrate from Pepsi and other franchisers or using the company's own concentrate, combining it with water and sugar or high fructose, and then bottling the mix into glass or plastic containers for later distribution to points-of-sale throughout its territories. The beverages are distributed through a network of company-owned trucks.
About HarbourVest
http://www.harbourvest.com/
HarbourVest Partners, LLC, formerly Hancock Venture Partners, Inc. which was established in 1982, is now one of the largest private equity investment firms in the world, managing assets of approximately $6.5 billion. HarbourVest has developed expertise in the areas of software, networking, telecommunications and management buyouts. The firm currently has investments in the U.S., Canada, Europe, Asia, Latin America and Africa. Previous investments include Concord Communications, Esprit Telecom Group plc, FileNet Corporation, Manugistics, NETCOM On-Line and UUNET Technologies. HarbourVest has offices in Boston, London and Hong Kong.