Three major European botlers of Coca-Cola get merged

Coca-Cola European Partners will be the world’s largest independent Coca-Cola bottler based on net revenues

Eva González London (UK), 6 August, 2015

Coca-Cola Enterprises (CCE), Coca-Cola Iberian Partners and Coca-Cola Erfrishungsgetränke AG (CCEAG), a wholly owned subsidiary of The Coca-Cola Company today announced they have agreed to combine their businesses into a new company to be called Coca-Cola European Partners Plc.
The merger will create the world’s largest independent Coca-Cola bottler based on net revenues.
On a pre-synergy, pro forma basis, for 2015 the combined company’s annual net revenues are expected to be approximately $12.6 Bn with $2.1 Bn of EBITDA and $1.6 Bn of operating income with a volume of 2.5 Bn unit cases.

Sol Daurella, Executive Chairwoman of Coca-Cola Iberian Partners becomes the
Chairwoman of Coca-Cola European Partners and John Brock, Chairman and Chief Executive Officer of Coca-Cola Enterprises, takes the role of Chief Executive Officer in the merged company. Both will be members of the Board of Directors.

“The creation of a larger, unified Coca-Cola bottling partner in Western Europe represents an important step in our global system’s evolution,” said Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company. “We continue to adapt our business model to innovate, invest and grow along with the changing demands of the marketplace. With the strong leadership that will be assembled from across the three organizations, Coca-Cola European Partners will be well-positioned to deliver better and more effective service to customers throughout Western Europe and drive profitable growth across multiple beverage categories.”

Coca-Cola Iberian Partners and The Coca-Cola Company will own 34% and 18% of the combined company, respectively. CCE shareowners will own the 48% on a fully diluted basis.

The Coca-Cola Company and Coca-Cola European Partners will enter into a new 10-year bottling agreement with an option to renew for an additional 10-year period to support the new company growth plans. There will be an initial four-year incidence pricing agreement, extending economic terms currently in place in each respective territory.

© The Coca-Cola company

© The Coca-Cola company

The Boards of Directors of Coca-Cola Enterprises, Coca-Cola Iberian Partners and The Coca-Cola Company have approved the transaction. The proposed merger is subject to approval by CCE’s shareowners, receipt of regulatory clearances and other customary conditions. The merger is expected to close in the second quarter of 2016.

Coca-Cola European Partners will be headquartered in London ( UK) and its shares will be traded on the Euronext Amsterdam, the New York Stock Exchange and the Madrid Stock Exchange.

Over 50 botling plants servicing 300 million consumers in Western Europe

With more than 50 bottling plants and approximately 27,000 associates, Coca-Cola European Partners will serve a consumer population of over 300 million in 13 countries across Western Europe, including Andorra, Belgium, France, Germany, Great Britain, Iceland, Luxembourg, Monaco, Norway, Portugal, Spain, Sweden and the Netherlands. The combined company will operate in the four largest markets for nonalcoholic ready-to-drink beverages in Western Europe (Germany, Spain, Great Britain and France).

Management team and Board of Directors

Damian Gammell, currently Beverage Group President and CEO of Anadolu Efes and a previous Chief Executive Officer of CCEAG, will join CCE as Chief Operating Officer in autumn 2015 and become Chief Operating Officer of Coca-Cola European Partners upon closing. Manik (“Nik”) Jhangiani, currently the Chief Financial Officer of CCE, will become Coca-Cola European Partners’ Chief Financial Officer and Víctor Rufart, currently General Manager of CCIP, will become Chief Integration Officer. Other members of the new executive team will be announced before the closing of the transaction.

Along with Daurella and Brock, the initial Board of Directors of Coca-Cola European Partners will consist of 15 additional members, with the majority of the Board being independent, non-executive directors.

“In 2013, we combined our family-owned Iberian Coca-Cola bottlers with over 60 years of history to better serve our customers and consumers. Our Iberian shareowners see today’s announcement as an important step to further develop and optimize our offerings in Western Europe. As the single-largest shareowner in this new business we will play a strong strategic role in Coca-Cola European Partners, while continuing to be close to our country, business, local consumers and customers. Combining our unique expertise in the on-premise channels, targeted marketing experience and operational excellence with the skills of CCE and CCEAG, together we will drive growth in Western Europe,” Sol Daurella said

© The Coca-Cola  Company.

© The Coca-Cola Company.

“The creation of Coca-Cola European Partners will build on each bottler’s capabilities to create more efficient operations in their respective markets across Western Europe,” said John Brock, Chairman and Chief Executive Officer of CCE. “We look forward to bringing together our world-class supply chain and sales team with the distinct strengths offered by CCIP and CCEAG to capture additional growth opportunities in each market. This transaction offers clear synergies, along with the scale to better serve the needs of our customers and consumers in Western Europe, to become an even stronger partner to The Coca-Cola Company and create increased value for CCE’s shareowners.”

Image above the headline (left-right).- Muhtar Kent, Chairman and Chief Executive Officer, The Coca-Cola Company, Sol Daurella, Executive Chairwoman of Coca-Cola Iberian Partners (future Chairwoman of Coca-Cola European Partners) and John Brock, Chairman and Chief Executive Officer of Coca-Cola Enterprises, Inc. (future Chief Executive Officer of Coca-Cola European Partners) toast the creation of Coca-Cola European Partners. (Photo: Business Wire)

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