Coca-Cola Europacific Partners (CCEP) and Aboitiz Equity Ventures (AEV) have officially entered into a binding agreement to purchase Coca-Cola Beverages Philippines (CCBPI) from The Coca-Cola Company.
The collaborative acquisition of CCBPI was initially disclosed in August, with the firms revealing the signing of a letter of intent outlining the proposed purchase.
Today, CCEP has announced the successful completion of its due diligence and the establishment of a definitive agreement with AEV to acquire 100% of CCBPI, with a valuation of $1.8 billion on a debt-free, cash-free basis.
The companies have entered into a Share Purchase Agreement outlining essential terms of the acquisition, establishing a 60:40 ownership structure between CCEP and AEV.
CCEP has stated that the planned acquisition aims to enhance its prior successful expansion into Australia, Pacific, and Indonesia (API) in 2021. This move is intended to fortify its collaboration with The Coca-Cola Company, positioning CCEP as the leading Coca-Cola bottler globally in terms of both revenue and volume.
This acquisition is aligned with the company’s long-term growth strategy and is characterized as an additional measure to establish a more diverse footprint within its current API business segment.
The Share Purchase Agreement is contingent upon standard closing conditions, which include obtaining necessary regulatory approvals.