Femsa is experiencing the boom of its United States distribution business, and, to strengthen itself in the market, its subsidiary Envoy Solutions agreed to purchase Sigma Supply of North America, an independent specialized distribution company based in Hot Springs, Arkansas.
“Sigma Supply will add significant capabilities in the distribution of packaging materials, solutions and services, while also expanding Envoy’s presence in the state of Texas, as well as strengthening its presence in the South and Mid-Atlantic region,” the company said. in a statement sent to the Mexican Stock Exchange (BMV).
With this purchase, of which the amount of the negotiation was not disclosed, the Coca Cola bottler consolidates its strategy to build a national distribution platform in the United States.
The company has managed to consolidate itself in the United States, a market it entered in March 2020 with the distribution of products. Since then, the Monterrey bottler has established a logistics and distribution business in that market.
Femsa began purchasing the distribution business in March 2020, with the acquisition of Waxie Sanitary Supply and North American Corporation. Since then, through its subsidiary Envoy Solutions, the bottler has added another six companies to its distribution portfolio in the United States. The combined revenues of the acquired companies exceed $1.7 billion a year.
Sigma Supply operates 18 distribution centers, and this transaction will grow Envoy’s distribution network to include nearly 70 facilities, covering 34 states.
Sigma Supply sales for 2021 were approximately $370 million. The transaction is subject to customary closing conditions and clearances and closing is expected to occur during the second quarter of 2022.