Femsa Offloads Logistics Operations to Grupo Traxion
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Mexican behemoth Fomento Economico Mexicano has agreed to sell logistics operations to Mexican trucking firm Grupo Traxion for 4 billion pesos ($205 million) as the conglomerate continues to shed assets outside its core retail and bottling operations.
Traxion is buying operations including transport and warehousing in Mexico that operated under the Solistica brand, as well as some in Colombia and Brazil, cash and debt free, Femsa said in a statement. The deal excludes its small freight business in Brazil, the company added. Shares of Traxion rose as much as 4.8% while Femsa shares rose as much as 1.2%.
Grupo Traxion ranks No. 44 on the Transport Topics list of the top dry storage warehousing firms.
The transaction is subject to regulatory approvals and is expected to close early next year. The move is part of a strategy announced by Femsa in February 2023 to focus its business on retail and beverages that was disrupted by a management shakeup earlier this year. In July, the company sold its refrigeration and food service equipment operations for 8 billion pesos.
“For Traxion, this acquisition should provide a very important leg-up in its logistics footprint and exposure,” Citigroup analyst Stephen Trent wrote in a note. The sale represents welcome news from Femsa, Trent added, noting that investors are still waiting for answers on how the company will use the excess cash from its sales.
Traxion last year raised $253 million in a share sale, and had said it would use the funds for acquisitions as well as to expand its fleet of personnel transport vehicles.
Femsa is expected to report third-quarter results on Oct. 28.
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