CCEP, together with Aboitiz Equity Ventures Inc. (AEV), completes the acquisition of Coca-Cola Beverages Philippines, Inc. from The Coca-Cola Company

Further to the announcements on 2 August 2023, 20 November 2023 and 30 January 2024 (see links below), CCEP today announces it has, together with AEV, completed the acquisition to jointly acquire 100% of CCBPI from KO

• The key terms of the Share Purchase Agreement comprise:
- 60:40 ownership structure between CCEP and AEV with comprehensive governance arrangements in place
- Valuation of 100% of CCBPI at $1.8 billion on a debt-free, cash-free basis

• To aid comparability, FY23 adjusted financial information for selected metrics is provided in this release

The acquisition builds on CCEP’s successful expansion into Australia, Pacific & Indonesia (API) in 2021, further strengthens its partnership with KO and supports its long-term growth strategy and focus on driving shareholder value.

CCEP’s acquisition of CCBPI, with AEV, one of the leading conglomerates in the local market, is a great opportunity to co-own an established, well-run business with attractive profitability and growth prospects.

The transaction is thus immediately EPS accretive and creates an even more diverse footprint for CCEP within its existing API business segment, from now on renamed APS (Australia, Pacific & South East Asia). It provides the opportunity to leverage best practice and talent, including supporting Indonesia’s transformation journey. It is therefore aligned with CCEP’s aim of driving sustainable and stronger growth through diversification and scale, and underpins the company’s mid-term strategic objectives.

As CCEP will control the majority (60%) of CCBPI, it will consolidate CCBPI as of the acquisition date and establish a non-controlling interest representing AEV’s minority interest (40%). CCBPI delivered ~$1.91 billion (~€1.7 billion) of Revenue and ~$115 million (~€105 million) of Operating Profit in FY23.

The transaction consideration has been funded through existing liquidity and incremental borrowing. It will have a modest impact on CCEP’s leverage, having closed FY23 at the top end of its mid-term guided range of 3.0 times Net Debt to Comparable EBITDA.