Coca-Cola HBC has reached an agreement to acquire a 75% stake in Coca-Cola Beverages Africa (CCBA) from The Coca-Cola Company (TCCC) in a deal valued at $2.6 billion, marking one of the group’s most significant strategic expansions to date.
According to the announcement, the acquisition will be financed through a new bridge loan facility, covering both the cash consideration and the issuance of new Coca-Cola HBC shares to GFI, the holding company of the Gutsche family, co-owners of CCBA.
As part of the transaction, Coca-Cola HBC and TCCC have also agreed to an option agreement allowing either party to buy or sell the remaining 25% stake in CCBA that TCCC will retain after completion.
A historic moment for Coca-Cola HBC’
“This milestone marks a historic moment for Coca-Cola HBC and continues our tradition of growth and collaboration across Africa,” said Anastassis G. David, Chairman of the Board of Coca-Cola HBC.
“For decades, we have invested to unlock Africa’s tremendous potential, and we look forward to accelerating this positive momentum with CCBA — delivering lasting value for our shareholders and a positive impact on the communities we serve,” he added, thanking The Coca-Cola Company and the Gutsche family for their continued trust and partnership.
A Strategic Move for Growth in Africa
The acquisition will significantly expand Coca-Cola HBC’s African presence, uniting two of the continent’s leading bottlers. CCBA will add 14 new African markets to the company’s portfolio, building on Coca-Cola HBC’s long-standing operations in Nigeria (since 1951) and Egypt (since 2022).
Following the completion of the deal, Coca-Cola HBC will represent two-thirds of Coca-Cola’s total sales volume in Africa, covering more than half of the continent’s population.
Pro forma estimates for 2024 project combined sales volumes of four billion unit cases, revenues of €14.1 billion, and earnings before interest and taxes (EBIT) of €1.4 billion.
Expanding Into High-Growth Markets
The move supports Coca-Cola HBC’s strategy to diversify its geographic footprint and increase exposure to high-growth, demographically dynamic economies.
More than 60% of the population across CCBA’s markets is under 30 years old, offering strong potential for consumer engagement and growth in per-capita consumption.
CCBA is a leading bottler of non-alcoholic ready-to-drink beverages, managing a portfolio of over 40 global and local brands. The company has a strong record of performance and a firm commitment to sustainability, talent development, and community investment.
Leveraging Experience and Partnership
The acquisition will allow Coca-Cola HBC to leverage its deep experience in emerging markets, drawing on decades of successful operations in Africa. Its long-established presence in Nigeria and the successful integration of Egypt provide a foundation for further growth alongside CCBA’s extensive expertise.
By combining operations, Coca-Cola HBC aims to share best practices, enhance operational capabilities, and invest further in CCBA, creating a stronger platform for long-term development.
The deal also strengthens Coca-Cola HBC’s strategic partnership with The Coca-Cola Company, reflecting a shared vision for sustainable value creation and long-term collaboration across markets.
Looking Ahead
With this acquisition, Coca-Cola HBC cements its position as a key player in Africa’s beverage industry, aligning with its goal to become the leading 24/7 beverage partner on the continent.
As Africa continues to emerge as one of the world’s most promising growth regions, the partnership between Coca-Cola HBC and CCBA positions the company to play a defining role in shaping the future of the soft drinks market across the continent.
