Coca-Cola to sell controlling interest in Coca-Cola Beverages Africa

Coca-Cola (KO) and Gutsche Family Investments have agreed to sell a 75% controlling interest in Coca-Cola Beverages Africa to Coca-Cola HBC AG, the companies announced. CCBA is the largest Coca-Cola bottler in Africa. It operates in 14 countries on the continent and accounts for about 40% of all Coca-Cola product volume sold across Africa. Coca-Cola HBC is one of the largest Coca-Cola bottlers in the world, with operations in 29 countries across Europe and Africa, including Nigeria and Egypt. Coca-Cola will sell 41.52% out of its 66.52% stake in CCBA to Coca-Cola HBC, and Coca-Cola HBC is acquiring 33.48% of CCBA that is held by GFI. In total, the transaction values 100% of CCBA at an equity value of $3.4B. The transactions are targeted to close by the end of 2026. Coca-Cola and Coca-Cola HBC have also agreed to a separate option agreement for Coca-Cola HBC to acquire the remaining 25% of CCBA still owned by Coca-Cola within a six-year period from closing. The sale of Coca-Cola’s stake in CCBA is another step in the ongoing refranchising of company-owned or controlled bottling operations. Following the closing of this transaction, the company expects bottling investments to make up approximately 5% of consolidated net revenue. After the sale, the Gutsche family will continue its involvement in both the Coca-Cola system and Africa through its ownership stake in Coca-Cola HBC. Coca-Cola HBC’s acquisition of CCBA is targeted to be completed by the end of 2026, subject to satisfaction of conditions, including customary regulatory and antitrust approvals. As part of the acquisition, Coca-Cola HBC will pursue a secondary listing on the Johannesburg Stock Exchange, underpinning its commitment to South Africa and the African continent.