Coca-Cola HBC has entered into a definitive sale and purchase agreement to acquire a 75% shareholding in Coca-Cola Beverages Africa (CCBA) from The Coca-Cola Company (The Coca-Cola Company or TCCC) and Gutsche Family Investments (GFI) for a combined purchase price of USD 2.6 billion (together, the Acquisition), implying an equity value for 100% of CCBA of USD 3.4 billion. The Acquisition is being funded through a new bridge financing facility to cover the cash consideration and Coca-Cola HBC shares issued to GFI, representing 5.47% of Coca-Cola HBC’s enlarged issued and outstanding share capital. In addition, Coca-Cola HBC and TCCC have agreed to enter into an option agreement enabling Coca-Cola HBC to purchase, or TCCC to sell, the remaining 25% equity interest in CCBA still owned by TCCC following completion.
“This milestone marks a historic moment for Coca-Cola HBC and continues our legacy of growth and partnership across Africa. For decades, we have invested to unlock Africa’s extraordinary potential. We look forward to accelerating this positive momentum with CCBA to deliver lasting value for our stakeholders and make a positive impact in the communities we serve. On behalf of the board, I’d like to thank The Coca-Cola Company and the Gutsche family for their ongoing partnership and trust,” Anastassis G David, chairman of the Board of Coca-Cola HBC.
The acquisition brings together two of Africa’s leading bottlers, adding 14 new markets to Coca-Cola HBC’s existing operations in Nigeria, where it has been present since 1951, and Egypt, where it entered in 2022. Upon completion, Coca-Cola HBC will account for two-thirds of the Coca-Cola system’s total volume in Africa and cover more than half of the continent’s population. This expansion underscores the company’s long-term commitment to Africa, seen as a key driver of future growth. The combined entity is expected to deliver pro forma 2024 volumes of 4.0 billion unit cases, revenues of €14.1 billion, and EBIT of €1.4 billion.
The acquisition is set to further diversify Coca-Cola HBC’s geographic footprint, increasing its exposure to high-growth markets with strong demographic and economic potential. With over 60% of the population in CCBA’s markets under the age of 30, the region offers vast opportunities for consumer expansion and growth in per capita beverage consumption. The move also aligns with Coca-Cola HBC’s strategic vision of being the leading 24/7 beverage partner. CCBA is a prominent player in the non-alcoholic ready-to-drink (NARTD) segment with a portfolio of over 40 global and local brands, backed by a strong performance record and a deep commitment to sustainability, talent development, and community engagement.
Coca-Cola HBC aims to leverage its extensive experience in emerging markets to unlock new growth avenues for CCBA. The company’s longstanding operations in Nigeria and successful integration of Egypt demonstrate its capability to manage complex markets, positioning it well to build on CCBA’s regional expertise. The acquisition also strengthens Coca-Cola HBC’s enduring partnership with The Coca-Cola Company, reflecting a shared vision to drive long-term value creation across the Coca-Cola system.
From a financial standpoint, the transaction is expected to be low single-digit EPS accretive from the first full year following completion. Leverage is projected to move towards the upper end of Coca-Cola HBC’s medium-term target range of 1.5 to 2.0 times net debt to EBITDA, with no anticipated impact on its credit rating. The company reaffirmed its commitment to maintaining a strong investment-grade profile. While its capital allocation priorities remain unchanged, Coca-Cola HBC announced that it will cancel its ongoing share buyback programme with immediate effect as part of the acquisition plan.
