Coca-Cola HBC AG announces today that, following the publication of its financial results for the six months ended 2 July 2021, its wholly-owned subsidiary Coca-Cola HBC Holdings BV (“CCH Holdings”) has reached an agreement to acquire approximately 94.7% of Coca-Cola Bottling Company of Egypt S.A.E. (“CCBCE”) from its major shareholders.
A wholly-owned affiliate of The Coca-Cola Company (“TCCC”) and MAC Beverages Limited (“MBL”) and certain of its affiliated entities for an agreed combined purchase price of US$427 million, subject to certain adjustments (the “Proposed Transactions”).Benefits and reasons for the Proposed Transactions
- Access to the second largest Non-Alcoholic Ready To Drink market (“NARTD”) in Africa by volume, building on existing scale – Nigeria and Egypt account for c. 25% of the continent’s population
- Significant opportunity to leverage Coca-Cola HBC’s proven route-to-market capabilities and 70 years of experience operating in emerging markets to increase penetration of The Coca-Cola Company’s brand portfolio and drive category leadership
- Expand Coca-Cola HBC’s exposure to high growth geographies
- Low-single digit EPS accretion expected in the near term, with opportunity to create further value through progressively moving CCBCE’s margins towards the Coca-Cola HBC group average over time
ABOUT THE COCA-COLA BOTTLING COMPANY OF EGYPT
CCBCE was founded in 1994 as a joint venture company between The Coca-Cola Company (through the TCCC Seller) and MAC Beverages Limited and certain of its affiliated entities. MBL and certain of its affiliated entities and individuals currently have an approximately 52.7% shareholding in CCBCE while the TCCC Seller has an approximately 42% shareholding in CCBCE. The balance of the shares in CCBCE are held, and will continue to be held, by a diverse group of minority shareholders. CCBCE is a leading producer of non-alcoholic ready to drink beverages in Egypt operating five bottling plants. Its products include Coca-Cola, Sprite, Fanta, Schweppes, Schweppes gold, Crush and Dasani water. CCBCE recorded volume of approximately 275 million and 266 million unit cases and net sales revenue of EGP7.4 billion and EGP 7.2 billion for the years ended 31 December 2020 and 2019, respectively.
ABOUT THE COCA-COLA COMPANY
The Coca-Cola Company (NYSE: KO) is a total beverage company with products sold in more than 200 countries and territories. TCCC’s purpose is to refresh the world and make a difference. Its portfolio of brands includes Coca-Cola, Sprite, Fanta and other sparkling soft drinks. Its hydration, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, Powerade, Costa, Georgia, Gold Peak, Honest and Ayataka. Its nutrition, juice, dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS. TCCC is constantly transforming its portfolio, from reducing sugar in its drinks to bringing innovative new products to market. TCCC seeks to positively impact people’s lives and communities and the planet through water replenishment, packaging recycling, sustainable sourcing practices and carbon emissions reductions across its value chain. Together with its bottling network, TCCC employs more than 700,000 people, helping bring economic opportunity to local communities worldwide.
ABOUT MAC BEVERAGES LIMITED
MAC Beverages Limited is a privately owned group with investments in the beverages and packaging sectors in the MENA region. It has been an owner of CCBCE, the bottler of TCCC group’s beverages in Egypt since 1994. Certain affiliates of MAC Beverages Limited retain the rights to produce and sell beverages bearing TCCC’s brands in Libya and Yemen.
ABOUT COCA-COLA HBC
Coca-Cola HBC is a growth-focused consumer packaged goods business and strategic bottling partner of The Coca-Cola Company. We create value for all our stakeholders by supporting the socio-economic development of the communities in which we operate and we believe building a more positive environmental impact is integral to our future growth. Together, we and our customers serve more than 600 million consumers across a broad geographic footprint of 28 countries on three continents.
Our portfolio is one of the strongest, broadest and most flexible in the beverage industry, offering consumer-leading beverage brands in the sparkling, juice, water, sport, energy, plant-based, ready-to-drink tea, coffee, adult sparkling and premium spirits categories.
These beverages include Coca-Cola, Coca-Cola Zero, Schweppes, Kinley, Costa, Valser, Romerquelle, Fanta, Sprite, Powerade, FuzeTea, Dobry, Cappy, Monster and Adez. We foster an open and inclusive work environment amongst our more than 26,000 employees and we are ranked among the top sustainability performers in ESG benchmarks such as the Dow Jones Sustainability Indices, CDP, MSCI ESG and FTSE4Good.
Coca-Cola HBC has a premium listing on the London Stock Exchange (LSE:CCH) and is listed on the Athens Exchange (ATHEX:EEE).