UPDATE 1-Mexico's KOF buys Brazil drinks maker for $364 mln

(Recasts, adds chief executive quote, background)

MEXICO CITY, June 26 (Reuters) - Mexico's KOF (KOFL.MX: Quote, Profile, Research)(KOF.N: Quote, Profile, Research), the world's second-largest bottler of Coca-Cola drinks, said on Thursday it acquired Brazilian soda maker and brewer Refrigerantes Minas Gerais Ltda (Remil) for $364.1 million.

KOF, also known as Coca-Cola Femsa, said the purchase will give its consolidated Brazilian operations a 30 percent share of the Coca-Cola bottling system in Brazil, with more than 41 million consumers.

"This transaction will expand our footprint in Brazil by more than a third and substantially increase the number of clients and customers that we will serve ," KOF Chief Executive Carlos Salazar said in a statement.

The purchase follows KOF's acquisition last year of juice maker Jugos del Valle, which has operations in Mexico and Brazil, for $370 million.

"The company continues to use its cash flow to expand its reach and beverage portfolio," ratings agency Fitch said in a report earlier this month.

KOF is formed by Coca-Cola (KO.N: Quote, Profile, Research) and Mexican drinks maker and brewer Femsa (FMSAUBD.MX: Quote, Profile, Research) (FMX.N: Quote, Profile, Research), which produces Tecate, Sol and Dos Equis beers.