Coca-Cola HBC has announced that it has completed the acquisition of approximately 52.7% of Coca-Cola Bottling Company of Egypt S.A.E. (CCBCE) from MAC Beverages Limited (MBL) and certain affiliated parties.
The deal, valued at a cash consideration of US$304 million (€265.4 million), is subject to certain balance sheet adjustments.
An additional earnout amount may be payable based on CCBCE’s financial performance in 2021, Coca-Cola HBC added.
Coca-Cola HBC will gain access to the second-largest non-alcoholic ready-to-drink (NARTD) market in Africa by volume through this acquisition.
It will help the company build on its existing scale in Africa and increase Coca-Cola HBC’s exposure to high-growth geographies.
Zoran Bogdanovic, CEO of Coca-Cola HBC, commented, “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.
“We appreciate the trust placed in us by The Coca-Cola Company and MBL, and are ready to become part of the Coca-Cola system growth story in Egypt.”
Abdul Galil Besher, the current executive chairman of CCBCE, will continue as non-executive chairman of CCBCE.
The transaction with MBL involves the potential acquisition of another approximately 2.8% stake by Coca-Cola HBC from certain other minority shareholders according to agreements to be entered into in due course.
In addition, a convertible loan issued to a wholly-owned affiliate of The Coca-Cola Company (the TCCC Seller) by CCBCE, has been transferred to CCH Holdings for a cash consideration of approximately US$22 million.
Completion of the acquisition of approximately 42% of CCBCE from the TCCC Seller, announced on 12 August 2021, is expected to occur later this month, bringing CCH Holdings’ total ownership in CCBCE to 94.7%, the company added.