Coca-Cola Hellenic Bottling Company S.A. (Coca-Cola HBC, CCHBC) announced today that it has agreed to acquire 100% of Aquavision, a newly constructed production facility in Russia. The plant, located in close proximity to Moscow, the largest consumer market in Russia, covers a total area of 35 hectares with four production lines (including two aseptic lines), warehousing facilities and office space.
The new site provides CCHBC with immediate incremental installed production capacity, as well as available space for the future installation of additional lines. The plant is capable of producing a full range of non-alcoholic beverages including carbonated soft drinks, fruit drinks and juices, bottled water, ready-to-drink tea and sports drinks. Aquavision has recently launched juice products under the ?botaniQ? trademark which are also included in the transaction.
The total net consideration for the transaction is EUR191.5 million which is being funded by a combination of cash and short-term debt. CCHBC expects this transaction to be earnings accretive in 2008. The transaction is also subject to regulatory approval.
Commenting, Doros Constantinou, Managing Director of CCHBC said "Our superior portfolio of products, together with our market execution capabilities provides a strong platform from which to continue leveraging the relatively low per-capita consumption levels, rising household disposable incomes and growing health awareness of Russian consumers. This acquisition provides us with immediate access to state-of-the-art production facilities and significant expanded capacity to meet the growing consumer demand for our products, allowing us to further build upon our current leadership position in this high potential market".