Coca‑Cola Consolidated has acquired all outstanding shares of its common stock previously held by a subsidiary of The Coca‑Cola Company, according to a joint announcement from both companies.
The transaction involved the purchase of 18.8 million shares owned by The Coca‑Cola Company through its indirect wholly owned subsidiary, Carolina Coca‑Cola Bottling Investments, Inc. Each share was bought at $127, bringing the total value of the deal to about $2.4 billion.
To finance the acquisition, Coca‑Cola Consolidated used a mix of available cash and a $1.2 billion, 364-day term loan facility. The company plans to refinance this loan with new term loan facilities in the near future.
“Today’s announcement represents a significant milestone for all stockholders of Coca‑Cola Consolidated,” said J. Frank Harrison, III, Chairman and CEO of Coca‑Cola Consolidated. “The purchase of these shares from The Coca‑Cola Company advances our commitment to build long-term value for all stockholders. This transaction is also a strong signal of our mutual confidence in the long-term health of the U.S. Coca‑Cola system.”
Henrique Braun, Executive Vice President and Chief Operating Officer of The Coca‑Cola Company, stated: “Coca‑Cola Consolidated has been a valued strategic partner for well over a century. The sale of our stake is a natural evolution of our strong relationship with Consolidated. Both companies remain fully aligned in our shared goal of delivering beverages with speed, scale and excellence to more than 60 million consumers in Consolidated’s franchise territory.”
Following this share repurchase, The Coca‑Cola Company has given up its seat on the Board of Directors at Coca‑Cola Consolidated.
Additionally, the Board at Coca‑Cola Consolidated decided to reduce its previously announced share repurchase program from $1 billion to $400 million. Of this revised authorization, about $136.3 million remains available for future buybacks. Management will determine if or when further repurchases are made based on factors such as market price and overall business conditions.
Rothschild & Co advised Coca‑Cola Consolidated during this transaction while Wells Fargo Bank underwrote the $1.2 billion term loan facility used for funding.
Legal counsel for Coca‑Cola Consolidated was provided by Moore & Van Allen PLLC and Paul, Weiss, Rifkind, Wharton & Garrison LLP.
