Turkish Coca-Cola Icecek acquires Coca-Cola Bangladesh for $130 million

Turkish beverage company Coca-Cola Içecek is set to fully acquire Coca-Cola Bangladesh Beverages Limited for $130 million.

As per an agreement, Coca-Cola Içecek will acquire 100 per cent of Coca-Cola Bangladesh Beverages Limited shares, Coca-Cola Içecek announced on its website on Thursday.

The final purchase price will be determined by subtracting the estimated net financial debt of Coca-Cola Bangladesh at the closing date from an enterprise value of $130 million.

According to the announcement, Coca-Cola ?çecek, together with its wholly owned subsidiary CCI International Holland B.V., and a subsidiary of The Coca-Cola Company, on Thursday signed a share purchase agreement for the acquisition of 100 per cent shares in Coca-Cola Bangladesh Beverages Limited.

CCI International Holland B.V. will be the main direct shareholder.

Coca-Cola Bangladesh is one of two companies involved in producing, selling and distributing Coca-Cola's sparkling and still beverages in Bangladesh.

Coca-Cola Içecek said the acquisition will be funded by CCI International Holland B.V.'s existing cash reserves and is expected to have a modest impact on Coca-Cola ?çecek's net leverage.

Established in 2009, Coca-Cola Bangladesh serves around 100 million consumers in Bangladesh's Rangpur, Rajshahi, Mymensingh and Dhaka regions.

Coca-Cola Bangladesh supplies around 300,000 points of sale and partners with roughly 500 distributors. It has over 300 employees, one bottling plant and three main warehouses.

Sparkling soft drinks make up most of Coca-Cola Bangladesh's sales, with water products forming the remainder.

Over the past five years, Coca-Cola Bangladesh has steadily strengthened its market position, becoming the leader in the sparkling beverage category with a 45.3 per cent value market share in 2023.

On the acquisition, Coca-Cola Içecek CEO Karim Yahi said they see this as a fantastic opportunity to enter a market with significant future potential, where they can generate growth and value by leveraging Coca-Cola ?çecek's core capabilities.

"This acquisition also creates a more diverse geographical footprint for Coca-Cola Içecek and solidifies its alignment with The Coca-Cola Company," he added.

The Turkish beverage company said the non-alcoholic ready-to-drink market in Bangladesh grew at a compound annual growth rate (CAGR) of 10 per cent between 2019 and 2022.

The market is expected to see an average annual growth of 12 per cent between 2023 and 2032.

Coca-Cola Içecek is a multinational beverage company with operations in Türkiye, Pakistan, Kazakhstan, Iraq, Uzbekistan, Azerbaijan, Kyrgyzstan, Jordan, Tajikistan, Turkmenistan and Syria.

[email protected]