Mexican company Fomento Económico Mexicano (FEMSA) has signed definitive agreements and completed the acquisition of a minority stake in US-based Jetro Restaurant Depot (JRD).
Founded in 1976, JRD operates in the wholesale business-to-business cash and carry retail foodservice segment in the country.
As part of the deal, FEMSA made an investment in JRD’s operating and real estate-holding.
In September, FEMSA signed a non-binding memorandum of understanding (MoU) with JRD for the stake acquisition.
FEMSA said in a statement that the transaction allows the company to gain exposure to the US wholesale cash and carry segment by investing with a formidable partner.
Additionally, it creates the platform for a new joint venture (JV) to develop and grow this business in FEMSA’s core markets.
The latest agreements also include the terms and conditions for a proposed JV of FEMSA and JRD to expand the latter’s business model to Mexico, as well as other markets in Latin America.
At the time of signing the deal, FEMSA noted that it will invest $750m as part of the MoU agreement. The JV will be equally owned by the partners.
JRD currently operates more than 130 stores across the US with Jetro Cash and Carry and Restaurant Depot formats.
FEMSA, which offers a range of solutions to its business units and third-party clients, has more than 295,000 employees in 13 countries.
The company participates in the retail industry through FEMSA Comercio, which consists of a Proximity Division operating OXXO, a small-format store chain, a Health Division and a Fuel Division.