Coca-Cola Hellenic Bottling Company (Coca Cola HBC) agreed on Thursday to buy a majority stake in Coca-Cola Bottling Company of Egypt (CCBCE) for $427 million after the Swiss-based soft drinks bottler reported a jump in half-year profits.
A unit of HBC will buy around 94.7 percent of the Egyptian company from its major shareholders including affiliates of the Coca-Cola Co and MAC Beverages, HBC added in a statement.
The deal, which would enable HBC to expand in its largest market Nigeria and grow in Egypt, was announced shortly after the company reported a nearly 68 percent jump in comparable operating profit to €350.3 million ($413.2 million) for the six months ended July 2.
Zoran Bogdanovic, chief executive of Coca-Cola HBC
“We are excited to welcome CCBCE to our group. We see great potential for this business to unlock considerable opportunities in the NARTD (Non-Alcoholic Ready To Drink market) category in Egypt.” Zoran Bogdanovic, chief executive of Coca-Cola HBC, said in the statement.
Abdul Galil Besher, chairman of MAC Beverages Limited and CCBCE said he believes that “Coca-Cola HBC will accelerate CCBCE’s growth ambitions, by combining its expertise, breadth of knowledge, know-how and critical mass, with the company’s deep market knowledge developed over our multi-decade presence in Egypt.”
Meanwhile, Brian Smith, president and chief operating officer of the Coca-Cola Company, said: “This transaction promises to strengthen our system in Egypt, where the expertise of Coca-Cola HBC will be a complement to the local knowledge and capabilities of CCBCE.”
“This agreement represents an important development in the Coca-Cola system’s long-term commitment to the growth and development of this important market.” Smith added.
