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Coca-Cola Europacific Partners completes $1.8bn joint acquisition

23-Feb-2024 - Last updated on 23-Feb-2024 at 16:43 GMT

Coca-Cola Europacific Partners completed the joint acquisition together with Aboitiz Equity Ventures. Credit: CCEP

Coca-Cola Europacific Partners (CCEP) has completed the acquisition of Coca-Cola Beverages Philippines (CCBPI) as part of a joint deal with Aboitiz Equity Ventures (AEV).

The purchase of CCBPI from The Coca-Cola Company was valued at $1.8bn, with CCEP and AEV agreeing on a 60:40 ownership structure.

The acquisition builds on CCEP’s expansion into Australia, Pacific & Indonesia (API) in 2021 and makes it the largest bottler of Coca-Cola in the world by both volume and revenue.

The completion of the move comes just as CCEP announced its financial results for 2023, with the group reporting revenue growth of 5.5% year-on-year and an operating profit increase of 11%. However, volumes declined by 0.5% compared with 2022.

During the same period, CCBPI posted revenues of $1.9bn and operating profits of $115m.

CCBPI acquisition an ‘exciting move’

Commenting on the newly published results, CCEP chief executive Damian Gammell said that 2023 had proven to be a great year for the business.

Gammell continued: “Our focus on leading brands, strong customer relationships and solid in-market execution served us well. We delivered solid top and bottom-line growth and generated impressive free cash flow.”

Referencing the acquisition explicitly, Gammell described it as an “exciting move” that would progress CCEP’s “long-term transformation strategy in Indonesia”.

He added: “We are well placed for FY24 and beyond. We are stronger and better, more diverse and robust, and our categories remain resilient despite ongoing macroeconomic and geopolitical volatility. We continue to actively manage our pricing and promotional spend to remain relevant to our consumers, balancing affordability and premiumisation. Along with our focus on productivity, this will all ultimately drive our free cash flow.

“We remain confident in the future, continuing to invest for the long-term. A record dividend in FY23 and our recent inclusion into the Nasdaq 100, combined with our FY24 guidance, demonstrate the strength of our business and our ability to deliver continued shareholder value. Supported by strong relationships with our brand partners, we have the platform and momentum, now including the Philippines, to go even further together whilst continuing to be a great partner for our customers and a great place to work for our colleagues.”

In other news, reports state that Diageo is working with Rothschild & Co to explore the market for three brands including Pimm’s.