Heineken Acquires Assets From Florida Ice and Farm Company

Acquirer: Heineken N.V. (Amsterdam: HEIA.AS)

Brews and sells beer and cider in the Americas, Europe, Africa, the Middle East, and the Asia Pacific
Provides wine and fruit wine, malt, soft drinks, and mineral and bottled water
Incorporated in 1864 and based in Amsterdam, the Netherlands

UBS AG

Florida Ice and Farm Company S.A. (“FIFCO”) is a food, beverage, retail, hotel and hospitality conglomerate
Founded in 1908 and headquartered in Heredia, Costa Rica

$3.2 billion/Cash

Heineken will gain iconic brands and expand its regional footprint by acquiring 75% of Distribuidora La Florida, FIFCO’s stakes in Nicaragua Brewing Holding, 25% minority interest in HEINEKEN Panama, and 100% of FIFCO’s beyond beer business in Mexico
In Costa Rica, Heineken now controls the century-old Imperial beer brand, and also acquires a major soft drink business including PepsiCo bottling rights; this, along with access to over 300 retail outlets, makes Heineken the second-largest soft drinks player in the country
Heineken expects the deal to be immediately accretive to operating margin and EPS and anticipates $50 million in cost synergies
Heineken expects only a modest increase in net debt, and states it remains committed to returning to its long-term target of below 2.5x debt-to-EBITDA
The acquisition supports Heineken’s EverGreen strategy by driving premiumization, innovation, and growth in high-potential Central American markets
“By integrating FIFCO’s iconic brands, deep market expertise, and exemplary sustainability credentials, we are accelerating our EverGreen strategy and entering new profit pools across Central America. This partnership is grounded in decades of shared values and trust, providing a robust foundation for long-term value creation,” said Dolf van den Brink, Heineken CEO

Growth for certain Central American markets has been rapid, such as in Panama, where the compound annual growth rate from 2019–2024 was approximately 20%
The implied acquisition multiple for the deal is 11.6x EV/EBITDA based on 2024 results
This sale of its core retail, food, and beverage businesses to Heineken represents a major shift in strategy for FIFCO; after the sale, it will retain its hotel, hospitality, and certain other assets
Heineken will integrate FIFCO’s strong sustainability programs, continuing investments in environmental and social initiatives aligned with its Brew a Better World strategy
Heineken began investing in FIFCO’s beverage and food businesses in 1986