Coca-Cola HBC AG (“Coca-Cola HBC”) announces today that, following publication of its financial results for the six months ended 2 July 2021, its wholly-owned subsidiary Coca-Cola HBC Holdings BV (“CCH Holdings”) has reached agreement to acquire approximately 94.7% of Coca-Cola Bottling Company of Egypt S.A.E. (“CCBCE”) from its major shareholders, a wholly-owned affiliate of The Coca-Cola Company (“TCCC”) and MAC Beverages Limited (“MBL”) and certain of its affiliated entities for an agreed combined purchase price of US$427 million, subject to certain adjustments (the “Proposed Transactions”).

Benefits and reasons for the Proposed Transactions:

  • Access to the second largest Non-Alcoholic Ready To Drink market (“NARTD”) in Africa by volume, building on existing scale - Nigeria and Egypt account for c. 25% of the continent’s population
  • Significant opportunity to leverage Coca-Cola HBC’s proven route-to-market capabilities and 70 years of experience operating in emerging markets to increase penetration of The Coca-Cola Company’s brand portfolio and drive category leadership
  • Expand Coca-Cola HBC’s exposure to high growth geographies
  • Low-single digit EPS accretion expected in the near term, with opportunity to create further value through progressively moving CCBCE’s margins towards the Coca-Cola HBC group average over time

Zoran Bogdanovic, CEO of Coca-Cola HBC, said:

“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. With our best-in-class execution capabilities, commercial expertise and world leading approach to sustainability and communities, we believe there is a significant opportunity to create value for all stakeholders.  We appreciate the trust placed in us by The Coca-Cola Company and MBL, and look forward to becoming part of the Coca-Cola system in Egypt.”