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Coca-Cola discloses US$626 million (euro415 million) purchase price for German bottlers

Coca-Cola discloses US$626 million (euro415 million) purchase price for German bottlers

The Coca-Cola Co., the world's largest beverage maker, disclosed Thursday in a regulatory filing that it agreed last year to pay US$626 million (euro415 million) plus the assumption of debt to consolidate its German bottling and distribution operations.
The Atlanta-based company had not disclosed the price when it announced the transaction on Aug. 2.
Coca-Cola bottlers and distributors in Germany had been independent prior to the agreement to merge under the corporate roof.
Coca-Cola acquired 18 German bottling and distribution operations through the deal, which was completed Sept. 1. The deal gave the company ownership of the Coca-Cola franchise rights for all of the German market.
The combined entity is known as Coca-Cola Erfrischungsgetraenke AG, or CCEAG, which had been the name of one of the bottlers Coca-Cola purchased.
The purchase price includes 17 percent of the outstanding shares of CCEAG valued at US$385 million (euro254.6 million), US$156 million (euro103 million) in cash and guaranteed future cash payments of US$85 million (euro56 million). Coca-Cola also agreed to assume US$34 million (euro22.5 million) in debt as part of the deal.
The agreement allows the former owners of the 18 German bottling and distribution operations an option to sell their respective shares in CCEAG back to Coca-Cola at a future date.
Coca-Cola has said a single German bottler would be able to increase the efficiency of the company's bottling and distribution operations in that country.
Coca-Cola said last year the combined German operations would employ about 12,000 people.
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Updated : 2021-03-08 18:06 GMT+08:00