(Alliance News) - Coca-Cola European Partners PLC on Wednesday announced it has entered into binding agreements to acquire Coca-Cola Amatil Ltd.
Coca-Cola Amatil is a bottler and distributor of ready-to-drink non-alcoholic and alcoholic beverages and coffee in the Asia Pacific region, operating in Australia, New Zealand, Indonesia, Papua New Guinea and Fiji. It posted earnings before interest, tax, depreciation and amortisation of AUD1.0 billion, approximately USD709.8 million, in 2019 on revenue of AUD5.1 billion.
The Uxbridge, Middlesex-based soft-drinks bottler said last week it plans to acquire 69% of Sydney-based Coca-Cola Amatil from investors, as well as the remaining 31% from Coca-Cola Co, for a total value of AUD8.7 billion.
Coca-Cola European Partners said Wednesday it has entered into a co-operation and sale deed with US brand owner Coca-Cola Co with regards to the acquisition of its 31% interest. This means that Coca-Cola Co will be entitled to AUD9.57, or around USD6.79, per share in cash for 11% of its stake in Amatil while the remaining 20% will fetch AUD10.75 per share, either in cash or a combination of cash and the issue of Coca-Cola European Partners shares.
Coca-Cola Amatil shares closed at AUD12.55 each in Sydney on Wednesday.
Coca-Cola European Partners said that the acquisition of the other 69% stake, held by shareholders, will go for USD12.75 per share.
The acquisition will create a broader and more balanced footprint for the Coca-Cola European Partners whilst almost doubling its consumer reach, with the aim of ultimately driving sustainable and faster growth, through geographic diversification and scale, Coca-Cola European Partners said last week.
Coca-Cola European Partners currently operates in the UK, France, Germany, Spain and Portugal, the Benelux region, and Sweden and Norway.
Coca-Cola European Partners Chief Executive Damian Gammel said Wednesday: "The strategic rationale behind this transaction is compelling, solidifying our position as the largest Coca-Cola bottler by revenue. I am eager to apply our proven formula in Western Europe to Coca-Cola Amatil's markets, including leadership in areas such as revenue growth management, in-market execution, digital and sustainability. However, I am equally excited and genuinely convinced that there will be many more opportunities as we move forward together with speed, scale, excellent people and a richer, more diverse culture.
"This larger platform will unlock enhanced value for our shareholders, all underpinned by an even stronger and more aligned strategic partnership with The Coca-Cola Company and our other brand partners."
Coca-Cola European Partners shares were up 0.2% at EUR30.95 pence each in London on Wednesday morning. Coca-Cola Co shares were trading 0.3% lower at USD49.18 each in the New York pre-market on Wednesday.
Coca-Cola Co has a 19% stake in Coca-Cola European Partners.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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