CEO of Coca-Cola European Partners (CCEP) Damian Gammell, excitedly announces that they are making a non-binding offer to acquire 69.2% of of Coca-Cola Amatil Limited (CCL).
“This is a unique and tremendous opportunity to combine two of the world’s best bottlers, creating a broader and more balanced geographic footprint,” says Mr Gammell.
The proposed transaction would create a broader and more balanced footprint for CCEP, while almost doubling CCEP’s consumer reach.
The aim is to ultimately drive sustainable and faster growth, through geographic diversification.
“This larger platform would enable us to scale up even faster than before and solidify our position as the largest Coca-Cola bottler by revenue, further strengthening our strategic partnership with The Coca-Cola Company,” continues Mr Gammell.
“We continue to demonstrate the resilience of our business and our ability to operate with agility in such a rapidly changing environment.”
Mr Gammell speaks highly of CCEP’s performance over the summer months.
“Volumes significant improved compared to the second-quarter of the year, mirroring outlet re-openings in the away from home channel, solid demand in the home channel, where we continued to take share, as well as favourable weather across the markets.”
Terms of the proposal
CCL’s Independent Shareholders, would receive $12.75 per share in cash, representing a premium of 23% to the 1-week Volume Weighted Average Price (VWAP), 28% to the 1-month VWAP and a premium of 38% to the 3-month VWAP of CCL’s shares.
KO would receive $9.57 per share in cash for part of their shareholding.
CCEP hosted a conference call with investors and analysts to discuss this announcement, to view it, click here.
Mr Gammell says, “We continue to adapt to changes in consumer behaviour by focusing on the core brands that our consumers love, leveraging and advancing our digital capabilities, and concentrating even more on the home channel, particularly in the run up to the key Christmas trading period.”