Coca-Cola Femsa has completed the acquisition of beverage company Vonpar through its Brazilian subsidiary, Spal Industria Brasileira de Bebidas.

Vonpar’s footprint fits geographically with Coca-Cola Femsa’s operations in the state of Paraná, in the south of Brazil, Coca-Cola Femsa said. The transaction will increase the company’s volume in Brazil by 25%, allowing it to increase its coverage to 49% of the Coca-Cola system’s bottling volume in the country.

The value of the deal is BRL 3.5 billion ($1.03 billion) with expected cost synergies worth around $19 million in the next 18-24 months.

In the 12 months to the end of June, Vonpar sold 190 million unit cases of beverages, including 23 million unit cases of beer, generating net revenue of more than BRL 2 billion ($590 million) and pre-tax earnings of $98 million.

Coca-Cola Femsa will start integrating the results of Vonpar from this month.

John Santa Maria, chief executive officer of Coca-Cola Femsa, said: “We are excited to expand our presence in Brazil with the acquisition of Vonpar. This transaction bolsters our leading position in the Coca-Cola system in one of the largest markets for Coke products in the world.

“We are strengthening our footprint in Brazil by consolidating contiguous regions, allowing us to develop synergies through operating efficiencies and incorporating experienced and talented employees to Coca-Cola Femsa’s family.

“We feel confident to continue executing on a profitable portfolio and to offer different alternatives to satisfy our consumer’s needs in this territory.”