Coca-Cola HBC expands in Africa with bottling M&A

Core Viewpoint - Coca-Cola HBC is acquiring a 75% stake in Coca-Cola Beverages Africa for $2.6 billion, creating the world's second-largest Coke bottler and significantly expanding its presence in Africa [1][2]. Group 1: Acquisition Details - The acquisition involves Coca-Cola HBC purchasing 75% of Coca-Cola Beverages Africa from The Coca-Cola Company and Gutsche Family Investments [1]. - The deal will allow Coca-Cola HBC to enter 14 additional African markets, including Ethiopia, Kenya, and South Africa [2]. - The transaction is expected to be finalized by the end of 2026, pending approvals [3]. Group 2: Financial Impact - The combined companies are projected to generate pro-forma revenues of €14.1 billion ($16.39 billion) and EBIT of €1.4 billion in 2024 [3]. - The acquisition is anticipated to be low-single digit EPS accretive from the first full year after completion [3]. Group 3: Market Potential - The African markets targeted by CCBA have a total addressable market of approximately 493 million people, with significant growth potential in per capita consumption of non-alcoholic ready-to-drink beverages [5]. - In 2023, CCBA markets consumed 11 billion liters of carbonates, indicating relatively low per capita consumption compared to Coca-Cola HBC's current markets [5]. Group 4: Company Performance - Coca-Cola HBC reported a 5% organic revenue increase in the third quarter, with volumes up by 1.1% [5]. - The company achieved an organic revenue growth of 8.1% over the first nine months of the year, reflecting strong portfolio performance and market share growth [6].