Bottler Coca-Cola Europacific Partners (CCEP) announced this Wednesday that it has reached an agreement with Aboitiz Equity Ventures (AEV) to acquire bottler Coca-Cola Beverages Philippines (CCBPI). The Coca Cola company for 1,640 million euros.
As CCEP reported to the National Securities Market Commission (CNMV), the transaction implies an enterprise value for the bottler of 1,800 million dollars (around 1,640 million euros).
CCEP AND AEV have signed a non-binding “Letter of Intent” to complete this acquisition, which establishes an ownership structure whereby CCEP would be a majority owner (60%) of CCBPI while AEV would hold a minority interest of 40%.
The proposed acquisition builds on CCEP’s Australia, Pacific and Indonesia (API) expansion in 2021, which has positioned the company as the world’s largest Coca-Cola bottler by revenue and volume, the company said.
The Coca-Cola Company sells bottlers
According to the company, the transaction is “consistent with the Coca-Cola Company’s stated intention” to divest the bottling operation.
“The proposed acquisition of CCBPI along with AEV, one of the largest conglomerates in the local market, presents a great opportunity to jointly acquire a consolidated and well managed business with attractive prospects for profitability and growth,” stated CCEP.
The company would be governed by a board of five, two appointed by AEV and three by CCEP, who would also appoint the CEO.
The planned takeover is subject to a number of conditions, as specified by CCEP.
“We are pleased to announce the acquisition of CCBPI together with AEV. This move allows us to have a more diverse footprint across our Australia, Pacific and Indonesia (API) business, supporting Indonesia’s transformation and driving our mid-term strategic goals,” said Damian Gammell, CEO of CCEP.