Coca-Cola Europacific Partners and Aboitiz Equity Ventures look set to buy Coca-Cola Beverages Philippines from The Coca-Cola Company, confirming CCEP as the world’s largest Coca-Cola bottler in revenue and volume.
The Philippines deal builds on the company’s move into the Australia, Pacific & Indonesia (API) region in 2021 when it acquired Coca-Cola Amatil for AU$9.93 billion.
CCEP and AEV have entered a Letter of Intent to jointly acquire CCBPI. CCEP said it has signed a non-binding term sheet and is in "advanced discussions" with AEV for a 60:40 ownership structure.
The bottler said CCBPI is well-run and has good profitability and growth prospects.
The proposed transaction is a further step for CCEP to create a more diverse footprint within its existing API business segment and support Indonesia’s transformation journey. It is aligned with CCEP’s aim of driving sustainable and stronger growth through diversification and scale and underpins the company’s strategic mid-term objectives.
The Letter of Intent outlines an enterprise value of US$1.8 billion on a debt free cash free basis. In FY22, CCBPI's revenue was around US$1.7 billion and roughly US$90 million of PBT.
As CCEP would be the majority owner (60 per cent), it is expected to consolidate CCBPI as of the acquisition date and establish a non-controlling interest representing AEV’s minority interest (40 per cent). The business would be governed by a board of five members, three appointed by CCEP and two by AEV. CCEP would also appoint the CEO.
Due diligence is well underway, but CCEP warned there were a few conditions including regulatory approvals still to be completed. If the deal goes through, it’s expected to close around the end of FY23.
