Coca-Cola HBC AG (“Coca-Cola HBC”) announces today that, following 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 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
Zoran Bogdanovic, CEO of Coca-Cola HBC, said:
“We are excited to welcome CCBCE to our group. We see great potential for this business to unlock considerable opportunities in the NARTD category in Egypt. With our best-in-class execution capabilities, commercial expertise and world leading approach to sustainability and communities, we believe there is a significant opportunity to create value for all stakeholders. We appreciate the trust placed in us by The Coca-Cola Company and MBL, and look forward to becoming part of the Coca-Cola system in Egypt.”
Abdul Galil Besher, Chairman of MAC Beverages Limited and CCBCE, made the following comment:
“We are very pleased to pass on to Coca-Cola HBC the ownership torch of CCBCE. As a leading anchor bottler of the Coca-Cola system, we believe that Coca-Cola HBC will accelerate CCBCE’s growth ambitions, by combining its expertise, breadth of knowledge, know-how and critical mass, with the company’s deep market knowledge developed over our multi-decade presence in Egypt.”
Brian Smith, President and Chief Operating Officer of The Coca-Cola Company, said:
“This transaction promises to strengthen our system in Egypt, where the expertise of Coca-Cola HBC will be a complement to the local knowledge and capabilities of CCBCE. This agreement represents an important development in the Coca-Cola system’s long-term commitment to the growth and development of this important market.”
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.
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.
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.
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). For more information, please visit https://www.coca-colahellenic.com.
UBS AG London Branch is authorised and regulated by the Financial Market Supervisory Authority in Switzerland. It is authorised by the Prudential Regulation Authority and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority in the United Kingdom. UBS AG London Branch is acting exclusively as sponsor to Coca-Cola HBC and as financial adviser to CCH Holdings and no one else in connection with the Proposed Transactions. In connection with such matters, UBS will not regard any other person as its client, nor will it be responsible to any other person for providing the protections afforded to its clients or for providing advice in relation to the Proposed Transactions, the contents of this press release or any other matter referred to herein.
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