Heineken's $3.2bn Acquisition of FIFCO
- amansp2006
- 1 hour ago
- 6 min read
By Haci Eren Sidar, Mustafa Arda Sis, Muthu Ramanathan, Josh Lai (University of Nottingham); Rasmus Sjögren, Alexander Henje, Haris Jasarevic, Nikolas Kakona (Stockholm School of Economics)
Photo: Stella de Smit
Overview of the deal
Acquirer: Heineken N.V.
Target: Florida Ice and Farm Company S.A. (FIFCO) – beverage, food and retail businesses (Distribuidora La Florida and related operations)
Total Transaction Size: $3.2 billion (cash consideration, Enterprise Value)
Closed date: H1 2026 (expected)
Target advisor: BofA Securities (Financial); Latham & Watkins LLP (Legal); BLP Legal (Costa Rica) (Legal)
Acquirer advisor: UBS AG (Financial); Davis Polk & Wardwell LLP (Legal); Consortium Legal (Costa Rica) (Legal)
Announced 22nd of September 2025, Heineken will acquire FIFCO’s multi-category beverage, food and retail business for approximately $3.2 billion in cash. With the binding agreement, Heineken will be granted the remaining 75% of Distribuidora La Florida, which includes an excess of 300 Musmanni and MUSI outlets in Costa Rica, alongside additional stakes in operations across Mexico, Panama, and Nicaragua. With approval from FIFCO’s board already in place, the deal is expected to finalise in H1 2026 subject to regulatory and shareholder approval.
With the 11.24x EV/EBITDA multiple, the deal is expected to contribute to the operating margin and EPS – adding to Heineken’s profits per share right away, which is expected to be financially accretive from day one. The deal is also in line with Heineken’s ‘EverGreen’ growth strategy, expanding their presence in Central America through securing full control of household brands like Imperial, and strengthening its relationship with PepsiCo, a major player in the industry, through bottling rights.
For FIFCO, the transaction marks the culmination of a 23-year partnership with Heineken. The FIFCO chairman Wilhelm Steinvorth stated that the agreement “honours FIFCO’s legacy” through provision of a global platform for its iconic brands like Imperial. The board has unanimously recommended that shareholders approve the deal, as the proceeds will help strengthen FIFCO’s balance sheet while it focuses on its core hospitality and real estate businesses.
“This agreement honours FIFCO’s legacy and brings complementary strengths that expand the capabilities and future potential of the units included in the transaction.” - Wilhelm Steinvorth, Chairman of FIFCO’s Board of Directors.
Company Details (Acquirer - Heineken)
Heineken is a leading global brewer with a market capitalization of approximately $43.81 billion. It holds a diverse portfolio spanning premium, regional, and no-alcohol brands. It is also guided by its EverGreen strategy that promotes sustainable growth through digitalization, and environmental responsibility.
Founded in 1864, headquartered in Amsterdam, Netherlands
CEO: Dolf van den Brink
Number of employees: 88,497 (2024)
Market Cap: $43.81 billion
EV: $62.4 billion
LTM Revenue: $29.18 billion
LTM EBITDA: $5.55 billion
LTM EV/Revenue: 2.14x
LTM EV/EBITDA: 11.24x
Recent Transactions: $2.5 bn acquisition of Distell Group Holdings Limited (Nov 2021), $~0.4 bn acquisition of Namibia Breweries Limited (Nov 2021), undisclosed acquisition of a minority-stake investment in TENZING AG (Apr 2025)
Company Details (Target - FIFCO)
Florida Ice and Farm Company S.A. (FIFCO) is a Costa Rican publicly traded company engaged in the production and distribution of food and beverage products, as well as in retail. The company has a diversified presence across Costa Rica, Central America, the Dominican Republic, Mexico and the United States.
Founded in 1908, headquartered in Heredia, Costa Rica
CEO: Rolando Carvajal Bravo
Number of employees: 6,883 (2024)
Market Cap: $1.60 billion
EV: $2.15 billion
LTM Revenue: $1.58 billion
LTM EBITDA: $316.56 million
LTM EV/Revenue: 1.38x
LTM EV/EBITDA: 6.89x
Projections and Assumptions
Short-Term consequences
The $3.2 billion acquisition is primarily financed through additional borrowing, including a €2 billion bond issuance, resulting in a net debt increase of $3.77 billion. In the short-term, this higher leverage is likely to weigh on profitability due to interest expenses and integration costs. Nevertheless, management expects the deal to be financially beneficial, anticipating improvements to operating margins and earnings per share once one-off expenses are excluded. While some analysts view the valuation as relatively high at 11.24x EV/EBITDA, Heineken expects to realise annual budget savings of over $50 million through operational synergies, helping to mitigate the short-term cost pressure.
Beyond these financial effects, the acquisition delivers notable strategic benefits. Heineken is acquiring a portfolio of well-established regional brands, including Costa Rica’s Imperial beer, which complements its premium offering and broadens its customer reach. It further strengthens Heineken’s geographic footprint, with FIFCO’s 5 production plants, 13 distribution centres, and more than 300 retail outlets enhancing the company’s presence across Central America. The deal also positions Heineken to capitalise on rising demand for premium beverages across Latin America, driven by growing disposable incomes and expanding urban markets. This is particularly advantageous given Heineken Panama’s 20% CAGR (2019-2024), and in the near-future, Central American economies are projected to grow by roughly 3% annually, providing a favourable backdrop for brand expansion and future cash inflow.
Overall, by aligning the business with high-growth urban markets where consumers are increasingly shifting toward upmarket products, this acquisition is well-timed to significantly benefit from regional economic prosperity.
Long-Term Upsides
The acquisition of FIFCO’s beverage and retail businesses represents a structural expansion of Heineken’s presence in Central America, a region which the company finds attractive with robust macroeconomic fundamentals and favourable demographics. The transaction consolidates full ownership of Heineken Panama, one of the group’s fastest-growing markets with approximately 20 percent annual volume growth over the past five years and positions Costa Rica among Heineken’s top five operating companies by operating profit. This contributes to creating a scalable regional platform which is anchored in leadership across beer, soft drinks and retail distribution.
According to Heineken’s CEO Dolf van den Brink, integrating FIFCO’s iconic brands, deep market expertise, and exemplary sustainability credentials will accelerate their EverGreen strategy when entering the large and growing profit pools across Central America. The acquisition strengthens Heineken’s exposure to economies which are characterized by rising middle-class incomes, stable currencies and GDP growth of approximately three percent. This supports long-term volume and margin expansion through premiumization and category development.
CFO Harold van den Broek highlights that the transaction aligns with Heineken’s strong financial framework, providing “an enhanced growth platform and scale in an environment with favourable economics and further value-enhancing synergies”. Long-term profitability is expected to benefit from approximately USD 50 million in annual cost synergies, improved operational efficiency and sustained cash generation, reinforcing Heineken’s position as the leading multi-category beverage company in one of the world’s most attractive growth regions.
Risks and Uncertainties
While the acquisition of FIFCO’s beverage and retail businesses strengthens Heineken’s strategic positioning in Central America, it presents several elements of risk. While FIFCO already operates an integrated platform spanning beer, soft drinks and retail, a challenge for Heineken lies in aligning these operations with its own global systems and management processes. Integrating FIFCO’s PepsiCo bottling licenses, regional retail network, and localized supply chains into Heineken’s standardized reporting, procurement, and brand strategy frameworks will require significant coordination across fragmented markets. Realizing the estimated $50 million in annual cost synergies thus depends on effective operational alignment which could prove to be challenging in the varying local business practices and complexities.
Financially, the deal will increase Heineken’s net debt by ~$3.77 billion, testing the firm’s ability to maintain its target of keeping net debt/EBITDA below 2.5x. Any delay in cost synergy realization or slowing of demand growth could put free cash flow under pressure. In that case, Heineken might have less flexibility to pursue new investments, fund shareholder returns or respond to unexpected market challenges.
Regulatory and macroeconomic uncertainty further add to the risk profile. The transaction still requires approval across multiple jurisdictions, so whilst closing is currently expected for H1 2026, delays, market interference or imposed remedies could push the timeline beyond that. Further, local tax changes, currency volatility and changing political landscapes can affect both costs and revenue translation. To achieve its targeted long-term profitability and justify the purchase multiple, maintaining consumer momentum across these Central American markets with varying levels of income growth will be essential.
Sources
Heineken to acquire FIFCO’s beverage and retail businesses, strengthening its presence across Central America Heineken buys FIFCO's Central America Business for $3.2 bn