Coca-Cola Europacific Partners has announced its potential joint venture with Aboitiz Equity Ventures to acquire Coca-Cola Beverages Philippines from The Coca-Cola Company, with a valuation of approximately $1.8 billion.
Strong Profitability and Growth Prospects
The London-listed bottling company views the Philippines bottling business as a highly profitable venture with significant growth opportunities. This acquisition would further strengthen its presence in the Australia, Pacific, and Indonesia market which it entered earlier this year.
Expected Timeline and Conditions
The completion of the takeover is anticipated by the end of 2023, pending various conditions such as due diligence and regulatory approval. However, it is important to note that there is no guarantee that the transaction will be finalized.
Letter of Intent and Ownership Structure
A letter of intent has been signed between Coca-Cola Europacific and AEV, accompanied by a nonbinding term sheet for the potential joint transaction. The ownership structure proposed is a 60:40 split between Coca-Cola Europacific and AEV respectively.
Enterprise Value and Consideration
The enterprise value of the Philippines business is estimated at $1.8 billion, assuming no debt and cash transactions. The consideration for the acquisition will be made in cash.
Positioning as the Leading Coca-Cola Bottler
If successful, this acquisition would position Coca-Cola Europacific as the largest Coca-Cola bottler globally in terms of both revenue and volume.