Beverage company Fomento Económico Mexicano (FEMSA) has entered a non-binding memorandum of understanding (MoU) to purchase a minority stake in privately held Jetro Restaurant Depot (JRD).
Based in the US, JRD operates business in the wholesale business-to-business cash and carry retail foodservice segment.
It currently has 30 stores across the US under two formats, Jetro Cash and Carry, and Restaurant Depot.
As part of the MoU, FEMSA and JRD also agreed to sign a joint venture to introduce the JRD’s business model to Mexico and other Latin American markets. FEMSA is investing $750m as part of the MoU agreement.
In a statement, FEMSA said: “We believe the transaction fits well with our strategic intent to invest in growth opportunities that can leverage our capability set across different markets, while providing the opportunity for attractive risk-adjusted returns.
“The transaction allows FEMSA to gain exposure to the US wholesale cash and carry segment by investing with a formidable partner, and at the same time creates the platform for a new joint venture to develop and grow this business in FEMSA’s core markets.
“We expect to sign definitive agreements to formalise today’s MoU during the month of October.”
The company expects to close the transaction, which is currently subject to customary regulatory approvals during the fourth quarter of this year.
FEMSA offers a range of solutions to its business units and third-party clients. It has more than 295,000 employees in 13 countries.