|
|
|
|
COCA-COLA H.B.C. S.A.
|
Announcement
|
|
August 6, 2008 Coca-Cola Hellenic Bottling Company S.A. (Coca-Cola Hellenic, the Company) today announced that it has reached an agreement to acquire Socib S.p.A. (Socib), the second largest Coca-Cola franchise bottler in Italy. The total net consideration for the transaction is Euro 270 million (including debt but excluding acquisition costs). The final purchase price is subject to certain adjustments. The acquisition is subject to regulatory approvals and is expected to be finalised in the fourth quarter of 2008. As such, we expect the transaction to have a negligible impact on earnings in 2008. The acquisition of Socib will expand Coca-Cola Hellenic's footprint in Italy through the addition of five regions in Southern Italy comprising a population of nearly 14 million. The acquisition will increase the scale of Coca-Cola Hellenic's operations in Italy by approximately 25% in terms of volume, and will offer attractive growth opportunities by aligning country-wide marketing initiatives, enhancing relationships with key account customers and sharing best practices in commercial activities. In addition, the acquisition is expected to create direct revenue synergies, such as driving growth through the Company's Fonti del Vulture water business by leveraging Socib's existing salesforce. We also expect to realise cost efficiencies benefiting from the increased scale of our Italian operations. Doros Constantinou, Managing Director of Coca-Cola Hellenic, said ''We are delighted with this acquisition, as it extends our footprint into southern Italy and complements our existing franchise in Central and Northern Italy. Socib has built a strong franchise, and we see significant opportunities in combining the two businesses. In particular, the acquisition allows us to leverage the depth of our existing local expertise and effective selling systems to create a stronger platform from which to compete across an expanded territory in the attractive Italian market. More importantly, this transaction is consistent with Coca-Cola Hellenic's long term objective of delivering superior growth and returns for shareholders through the continued extension of our proven business model into new territories and product categories. I am also pleased to announce that Socib's CEO, Fabrizio Capua, will become Chairman of our enlarged Italian business while Dario Rinero, Hellenic's current Managing Director in Italy, will assume executive responsibility for our entire Italian operations''.
|
|
|
|
|
|
|
