Coca-Cola HBC Acquires 75% of Coca-Cola Beverages Africa in $3.4 Billion Deal

Strategic Insights -

The Coca-Cola Company and Gutsche Family Investments have agreed to sell a 75% controlling interest in Coca-Cola Beverages Africa Pty. Ltd. (CCBA) to Coca-Cola HBC AG in a $3.4 billion deal. CCBA is the largest Coca-Cola bottler in Africa, operating in 14 countries and accounting for 40% of all Coca-Cola product volume sold across the continent. Coca-Cola HBC will acquire 33.48% of CCBA held by GFI, while Coca-Cola will sell 41.52% of its 66.52% stake in CCBA. The transaction values 100% of CCBA at an equity value of $3.4 billion and is expected to close by the end of 2026.

Key Takeaways:

  • The deal marks another significant step in Coca-Cola's refranchising of company-owned or controlled bottling operations, with bottling investments expected to make up approximately 5% of consolidated net revenue after the closing of the transaction.
  • Coca-Cola HBC will represent two-thirds of Africa's total Coca-Cola system volume and cover over 50% of the continent's population, solidifying its long-term commitment to growth in Africa.
  • The Gutsche family will continue its involvement in the Coca-Cola system and Africa through its ownership stake in Coca-Cola HBC.
  • Coca-Cola HBC will pursue a secondary listing on the Johannesburg Stock Exchange as part of the acquisition.
  • Rothschild & Co acted as sole financial adviser to Coca-Cola, while Goldman Sachs Bank Europe SE, Amsterdam Branch and UBS AG London Branch acted as financial advisers to Coca-Cola HBC. Nomura International acted as sole financial adviser to GFI.

Statistics:

  • CCBA operates in 14 countries across Africa and accounts for 40% of all Coca-Cola product volume sold across the continent.
  • Coca-Cola HBC will acquire 33.48% of CCBA held by GFI, while Coca-Cola will sell 41.52% of its 66.52% stake in CCBA.
  • The transaction values 100% of CCBA at an equity value of $3.4 billion.
  • Coca-Cola HBC will represent two-thirds of Africa's total Coca-Cola system volume and cover over 50% of the continent's population.
  • 200 countries and territories have Coca-Cola products.

Sources:

  • The Coca-Cola Company: https://www.coca-colacompany.com
  • Coca-Cola HBC AG: https://www.coca-colahellenic.com
  • Coca-Cola Beverages Africa CCBA: Not provided in the source material
  • Gutsche Family Investments: Not provided in the source material
  • BusinessWire: https://www.businesswire.com/news/home/20251020939952/en/