Athens, Greece 6 August 2008 - Coca‑Cola Hellenic Bottling Company S.A. (Coca‑Cola Hellenic, the Company) today announced that it has reached an agreement to acquire Socib S.p.A. (Socib), the second largest Coca‑Cola franchise bottler in Italy.
The total net consideration for the transaction is €270 million (including debt but excluding acquisition costs). The final purchase price is subject to certain adjustments. The acquisition is subject to regulatory approvals and is expected to be finalised in the fourth quarter of 2008. As such, we expect the transaction to have a negligible impact on earnings in 2008.
The acquisition of Socib will expand Coca‑Cola Hellenic’s footprint in Italy through the addition of five regions in Southern Italy comprising a population of nearly 14 million. The acquisition will increase the scale of Coca‑Cola Hellenic’s operations in Italy by approximately 25% in terms of volume, and will offer attractive growth opportunities by aligning country-wide marketing initiatives, enhancing relationships with key account customers and sharing best practices in commercial activities. In addition, the acquisition is expected to create direct revenue synergies, such as driving growth through the Company’s Fonti del Vulture water business by leveraging Socib’s existing salesforce. We also expect to realise cost efficiencies benefiting from the increased scale of our Italian operations.
Doros Constantinou, Managing Director of Coca‑Cola Hellenic, said “We are delighted with this acquisition, as it extends our footprint into southern Italy and complements our existing franchise in Central and Northern Italy. Socib has built a strong franchise, and we see significant opportunities in combining the two businesses. In particular, the acquisition allows us to leverage the depth of our existing local expertise and effective selling systems to create a stronger platform from which to compete across an expanded territory in the attractive Italian market.
More importantly, this transaction is consistent with Coca‑Cola Hellenic’s long term objective of delivering superior growth and returns for shareholders through the continued extension of our proven business model into new territories and product categories. I am also pleased to announce that Socib’s CEO, Fabrizio Capua, will become Chairman of our enlarged Italian business while Dario Rinero, Hellenic’s current Managing Director in Italy, will assume executive responsibility for our entire Italian operations.”
About Coca‑Cola Hellenic
Coca‑Cola Hellenic is one of the world's largest bottlers of products of The Coca‑Cola Company and has operations in 28 countries serving a population of 550 million people. Coca‑Cola Hellenic‘s shares are listed on the Athens Exchange (ATHEX: EEEK), with secondary listings on the London (LSE: CCB) and Australian (ASX: CHB) Stock Exchanges. Coca‑Cola Hellenic’s American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE: CCH).
Coca‑Cola Hellenic’s website is located at www.coca-colahellenic.com.
About Socib S.p.A.
Socib was founded in Reggio Calabria in 1962 as a Coca‑Cola franchise bottler in southern Italy. In 1974, the Capua family acquired the company and in the 1990’s extended its franchise coverage further in mainland southern Italy as well as Sardinia. Today, Socib covers a territory comprising five regions (Campania, Puglia, Basilicata, Calabria and Sardinia). Socib is headquartered in Marcianise (near Naples) and operates four plants comprising eleven production lines.
Deputy Investor Relations Director
Tel: +30 210 618 3255
email : firstname.lastname@example.org
European press contact:
Financial Dynamics London
Tel: +44 20 7269 7206
US press contact:
Financial Dynamics US
Tel: +1 212 850 5600
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
This document contains forward-looking statements that involve risks and uncertainties. These statements may generally, but not always, be identified by the use of words such as ‘believe’, ‘outlook’, ‘guidance’, ‘intend’, ‘expect’, ‘anticipate’, ‘plan’, ‘target’ and similar expressions to identify forward-looking statements. All statements other than statements of historical facts, including, among others, statements regarding our future financial position and results, our outlook for 2008 and future years, business strategy and the effects of the macro-economic environment and global oil prices on our business and financial condition, budgets, projected levels of consumption and production, projected raw material and other costs, estimates of capital expenditure and plans and objectives of management for future operations, are forwardlooking statements. You should not place undue reliance on these forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they reflect our current expectations and assumptions as to future events and circumstances that may not prove accurate. Our actual results could differ materially from those anticipated in the forwardlooking statements for many reasons, including the risks described in our annual report on Form 20-F filed with the U.S. Securities and Exchange Commission (File No 1-31466).
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity, performance or achievements will meet these expectations. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of the consolidated financial statements included here, either to conform them to actual results or to changes in our expectations.