Coca-Cola HBC AG on Monday said it has agreed to acquire vodka company Brown-Forman Finland Oy for $220 million.

The Zug, Switzerland-based soft-drink bottling company said it will acquire the company from Brown-Forman Corp.

Brown-Forman is a Louisville, Kentucky-based Spirits and wine company. Brown-Forman Finland owns the Finlandia vodka brand, a leading brand in central and eastern Europe.

Coca-Cola HBC said the acquisition is expected to be completed in the second half of 2023.

The company said the purchase will ‘enrich and strengthen its portfolio across more of its markets’.

Chief Executive Zoran Bogdanovic commented: ‘Having been associated with the distribution of Finlandia for 17 years in several markets, we are excited by this unique and regionally relevant opportunity that will support the acceleration of our on-premise business across more of our markets.

‘We view this as an attractive investment and a natural evolution of our role as one of Finlandia’s distribution partners, further attesting to the strength of our time-tested and wide-ranging partnership with Brown-Forman.’

Coca-Cola HBC shares fell 1.7% to 2,293.00 pence each in London on Monday morning.

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