Coca-Cola Europacific Partners PLC on Monday said it has reached an agreement with Aboitiz Equity Ventures Inc to jointly buy soft drinks bottler Coca-Cola Beverages Philippines Inc, a potential deal first announced back in August.
The Uxbridge, England-based bottling partner for Coca-Cola in 29 countries will acquire 100% of CCBPI from Coca Cola Co alongside Manila-based conglomerate Aboitiz.
Coca-Cola EP will hold a 60% stake in CCBPI, while Aboitiz will own 40%.
The transaction remains subject to regulatory approvals, Coca-Cola EP said, but is expected to close early next year.
The deal comes after the buyers signed a letter of intent back in August to buy CCPBI from Coca-Cola at an enterprise value of $1.8 billion on a debt-free, cash-free basis.
The price tag will be paid in cash and will have a ‘modest impact’ on Coca-Cola EP’s debt, putting a leverage target that the company had set for itself back to 2024 from the end of 2023.
In 2021, Coca-Cola EP, which already had covered the UK, France, Germany, Spain and Portugal, the Benelux region, and Sweden and Norway, bought Sydney-based Coca-Cola Amatil from its independent shareholders and Coca-Cola. This brought in Australia, New Zealand, Indonesia, Papua New Guinea and Fiji.
Shares in Coca-Cola EP were quoted at €55.40 in London on Monday, up 1.3%.
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