Cleary Gottlieb acts for FEMSA in creation of sanitary supplies JV

Cleary Gottlieb has represented Fomento Económico Mexicano (FEMSA) in its entry into definitive agreements with the shareholders of North American Corp. and WAXIE Sanitary Supply (WAXIE) to form a new platform within the janitorial and sanitary packaging and specialised distribution industry in the US.

The platform will bring together two market leaders in this field: WAXIE and North American, with FEMSA acquiring a majority controlling interest in the combined company.

Current shareholders of WAXIE and North American will remain investors. Each company will maintain their current management teams, with Charles Wax of WAXIE and John Miller of North American, members of the founding families of their respective companies, and current CEOs, now serving as co-CEOs of the new enterprise.

FEMSA is a Mexican company engaged in the beverage industry through Coca-Cola FEMSA, and is the largest franchise bottler of Coca-Cola products in the world. FEMSA is engaged in the retail industry through FEMSA Comercio, operating OXXO, the largest, and fastest-growing chain of small-format stores in Latin America, and in the beer industry, as a shareholder of Heineken, one of the world’s leading brewers with operations in more than 70 countries.

FEMSA’s investment in the venture is $900 million.

The transaction is subject to customary regulatory approvals and is expected to close during the first half of 2020.