- Bottling operations in 12 high-growth markets across Southern and East Africa with pro forma annual revenue of US$2.9bn and volume of 729 million unit cases (41 million hectolitres)
Coca-Colabottler in Africa and 10th largest worldwide with scale and resources to capture and accelerate the long-term growth potential in African markets
- Shared vision, extensive experience of operating in Africa and complementary capabilities to support superior performance
- Intended headquarters in South Africa,
Coca-ColaBeverages Africa’s largest market
JOHANNESBURG, SOUTH AFRICA – The
Africa offers significant growth potential in beverages, underpinned by rising personal disposable income, a fast-growing population and increasing per capita consumption. With more than 30 bottling plants and over 14,000 employees,
With a shared vision, extensive experience of operating in African markets, and long-term commitment to the continent,
On full completion of the proposed merger, shareholdings in
“Soft drinks are an important element of our growth strategy. This transaction increases our exposure to the total beverage market in Africa. The opportunity is significant, with favourable demographics and economic development pointing to excellent growth prospects,” said Alan Clark, SABMiller Chief Executive. “This also signifies a strengthening of our strategic relationship with The
Phil Gutsche, Chairman of Gutsche Family Investments (GFI), said, “Our family sees this merger as an important and logical step to enable
Details of the transaction
In a transaction to be completed in two phases,
- SABMiller’s South African soft drinks bottling businesses, Amalgamated Beverage Industries (ABI) and Appletiser, and its soft drink bottling businesses in eight other African countries
- GFI’s bottling interests in
Coca-ColaSabco, including its South African bottler, Coca‑Cola Fortune, and its bottling operations in six other African countries
Coca-ColaCompany’s South African soft drinks businesses in the form of Coca-ColaCanners, Valpré and Coca-ColaShanduka Beverages
Coca-Cola Beverages Africa will initially produce and distribute
SABMiller intends to include at a later date its Swaziland soft drinks business and those of its listed subsidiaries in Botswana and Zambia, subject to agreement in due course with those subsidiaries and the requisite regulatory and shareholder approvals.
Phil Gutsche will be Chairman of
As part of the transaction, The
Phases of the transaction and closing conditions
In Phase I:
- SABMiller will contribute its
Coca-Colabottling franchise (ABI) and Appletiser bottling businesses in South Africa, together with its soft drinks businesses in Comoros and Mayotte, as well as its water businesses in Ethiopia, Kenya and Uganda.
- GFI will contribute
Coca-ColaFortune in South Africa and its other African Coca-Colabottling businesses in Ethiopia, Kenya, Mozambique, Namibia, Tanzania and Uganda.
Coca-ColaCompany will contribute its South African soft drinks bottling businesses, Coca-ColaCanners, Valpré, and Coca-ColaShanduka Beverages. Completion of Phase I is subject to a number of customary closing conditions, including regulatory approvals in South Africa and other African jurisdictions, and is expected to complete within the next 6-9 months.
- Coca-Cola Beverages Africa’s results will be fully consolidated into SABMiller plc’s financial statements. The
Coca-ColaCompany will equity account for its stake in Coca-ColaBeverages Africa.
In Phase II:
- SABMiller intends to contribute its Swaziland soft drinks bottling business, and the soft drinks bottling businesses of its listed subsidiaries in Botswana and Zambia to
Completion of Phase II is subject to a number of customary closing conditions, including regulatory approvals and requisite shareholder approvals, and is expected to complete 12-18 months after the completion of Phase I.
Voting and Economic Interests
The shareholders’ voting and economic interests in
|Economic - Phase I
|Economic - Phase II
*plus 1 share
Coca-Cola Beverages South Africa
In South Africa, the parties’ respective bottling operations will be combined to create a new South African bottler,
Coca-Cola Beverages South Africa will retain the Kunene family and Khulile Beverages (previously
Pro forma financial metrics
The key financial metrics for
||SABMiller contributed businesses
||Coca-Cola Beverages Africa (pro forma)
|Volume (m UC)
|Volume (m hl)
|Pre-tax profits (US$m)
|Gross assets (US$m)
Note 1: The assets being contributed by The
Note 2: The pro forma financial figures assume completion of Phase II, in which additional assets contributed by SABMiller represent volume of 1.7m hl, revenue of US$161m, EBITA of US$42m and pre-tax profits of US$39m. Gross assets for Phase II businesses are excluded from pro forma financial figures as it is not possible to determine them.
Note 3: Financial figures represent non-IFRS, unaudited management estimates. SABMiller contributed businesses shown on March 2014 financial year end (except for ABI volume, revenue and EBITA which is shown on December 2013 year end); The
The transaction is expected to be EPS accretive to SABMiller in financial year three following completion of Phase I.
Rothschild advised SABMiller. Nomura International and NLA advised
Investors & Analysts
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Notes to editors
About SABMiller plc
SABMiller plc is in the beer and soft drinks business. We are the world’s second largest brewing company and are one of the world’s largest bottlers of
The group’s brand portfolio includes leading local brands such as Aguila (Colombia), Castle (South Africa), Miller Lite (USA), Snow (China), Victoria Bitter (Australia) and Tyskie (Poland) as well as global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch. Every minute of every day, more than 140,000 bottles of SABMiller beer are sold.
In the year ended 31 March 2014, the group sold 318 million hectolitres of lager, soft drinks and other alcoholic beverages, generating group net producer revenue of US$26,719 million and EBITA of US$6,453 million.
This announcement is available on the company website: www.sabmiller.com
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Coca-Cola Sabco is 80% owned by Gutsche Family Investments and its headquarters are in Port Elizabeth, South Africa.