Africa-Press – Eswatini. Pepsi India bottler Varun Beverages said on Tuesday it would buy South Africa-based Beverage Company (BevCo), in a deal valued at 13.2 billion rupees (just over E2.9 billion based on the current exchange rate).
This business transaction would enable it an entry into Africa’s largest market, including the Kingdom of Eswatini, where it is also bottling and distributing Pepsi branded beverages. The Board of Directors of the company, at their meeting held earlier this week, considered and approved to acquire 100 per cent stake in the business conducted by BevCo, South Africa, along with its wholly owned subsidiaries, with an option to accept minority co-investment from large equity fund subject to regulatory and other approvals including, but not limited to Pepsi Inc. and Competition Commission South Africa.
Facilities
BevCo, which is headquartered in Isando, Johannesburg, bottles and distributes PepsiCo-branded non-alcoholic beverages in South Africa and has five manufacturing facilities in the country, in addition to operations in the countries, Lesotho, Namibia, Botswana and Eswatini. It also bottles popular local beverage brands in South Africa, such as Coo-ee, JiVE, Refreshhh and Reboost. According to the company’s website, BevCo has over 75 years of combined industry experience, as an innovative soft drink company. Varun Beverages, one of PepsiCo’s largest franchisees outside the United States, has the provision to accept minority co-investment from a “large equity fund”, it said in a filing. The company has over 30 manufacturing facilities in India, packaging and distributing beverages under the Pepsi, Mirinda and Tropicana labels.
The deal is expected to be completed on or before 31 July 2024, subject to regulatory approvals. Shares of Varun Beverages closed 3.5 per cent higher on Tuesday, ahead of the announcement. According to sourced information, the Gurugram-based firm also signed a memorandum of understanding with the Jharkhand government on Tuesday, to set up a manufacturing plant in the Indian state, with a capital expenditure of 4.5 billion rupees.
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