Once closed, this $980m transaction will provide Saudi Arabia-based Aujan Industries a platform to accelerate the international growth of the Aujan brands, including Rani and Barbican, while enhancing the regional outlook for licensed brand, Vimto, the company said.
Aujan holds a top-three position in still beverages in every country in which it operates and is one of the top 100 companies in Saudi Arabia with total annual revenues exceeding $850m.
Sheikh Adel Aujan, chairman of Aujan Industries, said: “As one of the region’s leading beverage companies, this partnership will allow us to unlock new and substantial opportunities. Drawing upon Aujan’s deep regional insights and the international capabilities of The Coca-Cola Company, Aujan will continue to leverage the strength of its leadership team and is now positioned for even greater success in the region and internationally.
“Today’s announcement marks the fruition of extensive dialogue between Aujan and The Coca-Cola Company which has resulted in a soundly based framework for the commercial development of the business. Now supported by our shared heritage of more than 200 years, we are beginning an exciting new chapter in Aujan’s history.”
Under the terms of the agreement, The Coca-Cola Company will acquire 5% of the Aujan entity that holds the rights to Aujan-owned brands, and 49% of Aujan’s bottling and distribution company. The licensed brand Vimto will remain with the Aujan-managed bottling and distribution company.
Ahmet Bozer, president, Coca-Cola Eurasia and Africa Group, said: “Today’s announcement is a demonstration of our commitment to consumers here that we are investing for the long term. In addition to their great brands, we are investing in Aujan because it is a well-run, successful business. This transaction creates a platform for further cooperation between The Coca-Cola Company, Aujan and existing bottling partners across the region.”
This agreement excludes Aujan’s Iranian manufacturing and distribution business. Closing of the transaction is subject to certain conditions. Both companies expect the transaction to close in the first half of 2012.
Source: The Coca-Cola Company
© FoodBev Media Ltd 2024