EGYPT – Coca-Cola HBC, the world’s third-largest Coca-Cola anchor bottler is seeking to acquire a majority stake in Coca-Cola Bottling Company of Egypt (CCBCE) through its subsidiary Coca-Cola HBC Holdings.
Under the agreement, Coca-Cola HBC will acquire 94.7% stake in the Egyptian unit from its majority shareholders for an agreed combined purchase price of US$427 million.
CCBCE was founded in 1994 as a joint venture company between The Coca-Cola Company through the TCCC Seller and MAC Beverages Limited (MBL) together with certain of its affiliated entities.
MBL, a privately owned group with investments in the beverages and packaging sectors in the MENA region 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 the company, with the balance of the shares held, and will continue to be owned by a diverse group of minority shareholders.
Abdul Galil Besher, Chairman of MAC Beverages Limited and CCBCE said, “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.”
CCBCE is a leading producer of non-alcoholic ready to drink beverages in Egypt operating five bottling plants.
The company 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.
Finalization of the proposed transaction will enable Coca-Cola HBC access the second largest Non-Alcoholic Ready To Drink market (NARTD) in Africa by volume, building on existing scale in Nigeria.
“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,” Zoran Bogdanovic, CEO of Coca-Cola HBC, said.
CCBCE is also set to leverage on 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.
“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,” Brian Smith, President and Chief Operating Officer of The Coca-Cola Company, said.
The deal comes months after The Coca-Cola Company announced plans of listing its largest bottler in Africa, Coca-Cola Beverages Africa (CCBA), as a publicly traded company.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE
