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Beverage industry

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 (CCH) for an equity value of $3.4 billion. The transaction values 100% of CCBA, with Coca-Cola HBC acquiring 41.52% of the stake from Coca-Cola and 33.48% from GFI. CCBA is the largest Coca-Cola bottler in Africa, operating in 14 countries and accounting for about 40% of all Coca-Cola product volume sold across the continent.

Key Takeaways:

  • Coca-Cola HBC will represent two-thirds of Africa's total Coca-Cola system volume and cover over 50% of the continent's population following the acquisition.
  • The transaction 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 after the closing.
  • Coca-Cola HBC will pursue a secondary listing on the Johannesburg Stock Exchange, underpinning its commitment to South Africa and the African continent.
  • 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 has a proven track record of operating in Africa for nearly 75 years and is committed to sustainable, profitable growth in the region.

Statistics:

  • $3.4 billion: equity value of the transaction
  • 75%: controlling interest in CCBA being sold to Coca-Cola HBC
  • 41.52%: stake in CCBA being sold by Coca-Cola to Coca-Cola HBC
  • 33.48%: stake in CCBA being sold by GFI to Coca-Cola HBC
  • 5%: bottling investments expected to make up of consolidated net revenue after the closing
  • 14: number of countries where CCBA operates
  • 40%: percentage of all Coca-Cola ready-to-drink beverages sold in Africa by volume
  • 750 million: number of consumers served by Coca-Cola HBC across 29 countries
  • 33,000: number of employees working for Coca-Cola HBC

Sources:

  • "The Coca-Cola Company and Gutsche Family Investments Agree to Sell Controlling Interest in CCBA to Coca-Cola HBC AG" - official Coca-Cola Company press release
  • "Coca-Cola HBC" - company website
  • "Coca-Cola Beverages Africa" - company website
  • "Gutsche Family Investments" - company website
  • Dow Jones Best-in-Class Indices 2024
  • CDP 2024
  • MSCI ESG 2024
  • FTSE4Good 2024
  • ISS ESG 2024

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