LONDON, UK: Coca-Cola Europacific Partners plc (CCEP), the world’s largest Coca-Cola bottler by both revenue and volume, has announced its intention to jointly acquire Coca-Cola Beverages Philippines, Inc. (CCBPI), a successful business with attractive profitability and growth prospects, from The Coca-Cola Company (KO).
CCEP has signed a non-binding Term Sheet and is in advanced discussions with Aboitiz Equity Ventures Inc. (AEV), one of the leading conglomerates in the local market, regarding a potential joint transaction, which may lead to the acquisition of CCBPI from KO, based on a 60:40 ownership structure between CCEP and AEV.
The proposed acquisition would build on CCEP’s successful expansion into Australia, Pacific & Indonesia (API) in 2021, positioning it as a global leader in the beverage industry and supporting its long-term growth strategy and focus on driving shareholder value.
The proposed transaction is aligned with CCEP’s aim of driving sustainable and stronger growth through diversification and scale, and underpins the company’s strategic mid-term objectives. It is also consistent with KO’s stated intent to divest bottling operations.
CCEP and AEV’s non-binding Letter of Intent with KO implies an enterprise value (EV) for CCBPI of US$1.8 billion (on a debt free cash free basis). The consideration would be paid in cash, which would have a modest impact on CCEP’s leverage. CCBPI delivered ~US$1.71 billion of revenue and ~US$901 million of PBT in FY22.
As CCEP would be the majority owner (60%), it is expected to consolidate CCBPI as of the acquisition date and establish a non-controlling interest representing AEV’s minority interest (40%). The business would be governed by a Board of 5 members, three appointed by CCEP and two by AEV. CCEP would also appoint the CEO.
The proposed acquisition is subject to a number of conditions, including satisfactory completion of due diligence (which is well underway), the parties concluding definitive agreements and the receipt of regulatory approvals.
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