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Coca-Cola Co. (Atlanta, Georgia)

Coca-Cola HBC to Acquire Controlling Interest in Coca-Cola Beverages Africa for $3.4 Billion

Strategic Insights

— 1 min read

The Coca-Cola Company and Gutsche Family Investments have agreed to sell a 75% controlling interest in Coca-Cola Beverages Africa (CCBA) to Coca-Cola HBC AG for an equity value of US$3.4 billion. This transaction marks a significant step in Coca-Cola's ongoing refranchising of company-owned or controlled bottling operations. Following the closing of this transaction, Coca-Cola expects bottling investments to make up approximately 5% of consolidated net revenue.

Key Takeaways:

  • The transaction values 100% of CCBA at an equity value of US$3.4 billion, with Coca-Cola HBC AG acquiring a 75% controlling interest for an equity value of US$2.55 billion.
  • Coca-Cola will sell 41.52% of its 66.52% stake in CCBA to Coca-Cola HBC AG, and Coca-Cola HBC AG is acquiring 33.48% of CCBA held by Gutsche Family Investments.
  • The sale is part of Coca-Cola's ongoing refranchising of company-owned or controlled bottling operations, with bottling investments expected to make up approximately 5% of consolidated net revenue following the closing of this transaction.
  • Coca-Cola HBC AG will pursue a secondary listing on the Johannesburg Stock Exchange, underpinning its commitment to South Africa and the African continent.
  • Coca-Cola HBC AG will represent two-thirds of Africa's total Coca-Cola system volume and cover over 50% of the continent's population following the closing of the acquisition.
  • The transaction is targeted to close by the end of 2026, subject to satisfaction of conditions, including customary regulatory and antitrust approvals.

Statistics:

  • $3.4 billion: equity value of Coca-Cola Beverages Africa
  • 75%: controlling interest retained by Coca-Cola HBC AG
  • 40%: market share growth in Egypt realized by Coca-Cola HBC AG
  • 13%: bottling investments as a percent of consolidated net revenue in 2024
  • 5%: bottling investments expected to make up of consolidated net revenue following the closing of this transaction
  • 14 countries: presence of Coca-Cola Beverages Africa across the African continent
  • 800,000: number of customers serviced by Coca-Cola Beverages Africa
  • 33,000: number of employees within Coca-Cola HBC AG

Sources:

  • Coca-Cola Company - "Coca-Cola HBC to Acquire Controlling Interest in Coca-Cola Beverages Africa"
  • Contify.com - Category: Consumer Goods, Food, Beverage and Tobacco, Packaged Foods and Processed Meats, M&A Activities

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