Consumer goods provider Coca-Cola Europacific Partners (NASDAQ:CCEP) has teamed up with Aboitiz Equity Ventures (AEV) to acquire Coca-Cola Beverages Philippines (CCBPI) from The Coca-Cola Company (NYSE:KO) at a $1.8 billion valuation.
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Following an announcement in August, CCEP has now completed its due diligence and agreed to acquire 100% of CCBPI. Under the share purchase agreement, CCEP will own a 60% stake in CCBPI, with the rest owned by AEV.
Importantly, the move will further build upon CCEP’s expansion into Australia, the Pacific, and Indonesia and bolster its partnership with KO. Moreover, this move would make CCEP the largest bottler for Coca-Cola in terms of revenue and volume.
KO is a significant shareholder in CCEP. Consequently, the sellers are deemed as related parties of CCEP under the transaction. The deal is subject to closing conditions and is anticipated to close early next year.
Is CCEP a Good Investment?
Overall, the Street has a Moderate Buy consensus rating on Coca-Cola Europacific. Following a nearly 17% price gain over the past year, the average CCEP price target of $66.93 implies a modest 11.4% potential upside.
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