The Coca-Cola Company takes over Costa



2018/09/02

The Coca-Cola Company announced the completion of a final today
Agreement known after which the company takes over Costa Limited
, a company that was founded in London in 1971
one of the largest coffee brands in the world.

This press release contains multimedia content. View the full message here:
https://www.businesswire.com/news/home/20180902005032/de/

The acquisition of Costa from the parent company Whitbread PLC is 5.1
Billions of dollars and gives Coca-Cola a strong
Coffee platform in parts of Europe, in the Asia-Pacific region, in the Middle East
East and in Africa with further expansion possibilities. the
Costa's business activities include a leading brand, almost 4,000
Sales points with highly qualified barista's, a coffee distributor,
Coffee-for-home layouts and the ultra-modern coffee roaster from
Costa.

For Coca-Cola, the acquisition brings a scalable coffee platform
with key competences in a fast-growing trend category.
Costa is considered the leading coffee brand in the UK and
is increasingly present in China and other markets. Costa offers
with the brand Costa Express coffee in barista-quality and has one
solid presence at various sales points such as petrol stations, cinemas
and travel centers. Costa has further expansion possibilities, in
different formats, with customers throughout the Coca-Cola system
time.

Through the acquisition, the existing coffee supply from Coca-Cola
added a leading brand and platform. To the portfolio
counts all the market-leading brand Georgia in Japan
Coffee products in many other countries.

Costa also offers Coca-Cola a thorough knowledge of the whole
Coffee chain, including purchasing, sales
and sales. This is the existing capacity in the Coca-Cola system
supplement.

"Costa gives Coca-Cola new capacity and know-how in the coffee sector,
And our system can grow globally for the Costa brand
"said James Quincey, President and CEO of Coca-Cola." Hot
Drinks is one of the few segments of the entire beverage market
Coca-Cola does not have a worldwide brand. Costa gives us a strong
Coffee platform access to this market. "

Coffee is an important and growing segment of the world
Beverage market. Coffee remains a highly fragmented market worldwide
And there is no company that has all formats on a global level
is active.

"We at Costa are very happy to also become a member of the Coca-Cola Company
", says Dominic Paul, Managing Director of Costa." Costa is one
fantastic business with dedicated and passionate
Employees, a wealth of experience and a huge global
Potential. As part of the Coca-Cola system, we are able to do ours
To expand business faster. I would like to
with our customers and all those from Costa who helped us
To build up our business so far, thank you, and I'm looking at the next one
exciting chapter in Costa's vision – Inspiring the world to love
Great coffee – eagerly awaiting. "

Details of the transaction

The purchase price is £ 3.9 billion. This is in line with
about 5.1 billion dollars. After graduation, the Coca-Cola
Company all shares in circulation of Costa Limited, one
100% subsidiary of Whitbread. the
Subsidiary includes all existing companies of
Costa.

Whitbread approves the shareholders for the transaction
expected to be in mid-October. The conclusion of the company
is subject to the usual closing conditions, such as
antitrust approvals in the EU and in China and will do so
is expected to be done in the first half of 2019.

Coca-Cola expects the transaction in the first fiscal year
has few positive consequences for the income without
Considerations of adjustments according to the acquisition method. Therefor
Fiscal year 2018 (from 1 March 2018) has Costa sales and EBITDA
GBP 1.3 billion and GBP 238 million, respectively. this one
equates to a turnover of approximately $ 1.7 billion and EBITDA
of $ 312 million.

Because Coca-Cola assumes the transaction in the first half
Completed in 2019, the forecast for 2018 will not change.
Moreover, the long-term objectives of the company remain
unchanged. Coca-Cola will provide more information as part of a
Extensive prognosis at a conference call about the results of the
fourth quarter of 2018.

consultant

Rothschild acted as the sole financial adviser to the Coca-Cola Company.
Clifford Chance was legal advisor to the Coca-Cola Company and Skadden,
Arps, Slate, Meagher & Flom acted as tax advisers for the Coca-Cola
Company.

Information about the conference call before
investors

Coca-Cola will hold Eastern time today, August 31, 2018 at 8:30 AM
(14:30 CEST) to hold a conference call for investors and analysts
to explain the announcement. Other materials stand for the
Conference call on the company's website in the area
"Investors" available: http://www.coca-colacompany.com.
A live webcast of the conference call will be posted on the website
partnership http://www.coca-colacompany.com
offered in the & # 39; Investors & # 39; An audio repeat
digital form and a transcript are available for download within
Available 24 hours after the conference call.

About the Coca-Cola company

The Coca-Cola Company (NYSE: KO) is a manufacturer of pure beverages
represented with more than 500 brands in more than 200 countries and territories
is. The company's portfolio includes the Coca-Cola brands
some of the world's most valuable beverage brands, including AdeS
(Soya drinks), Ayataka (green tea), Dasani (water), Del Valle (juices
and nectar), Fanta, Georgia (coffee), Gold Peak (tea and coffee),
Honest tea, innocent (smoothies and juices), Minute Maid (juices),
Powerade (sports drinks), Simply (juices), smartwater, Sprite,
vitamin water and ZICO (coconut water). We change our portfolio
continuous, from reducing the sugar content in our drinks to
for the launch of innovative new products. Work moreover
We are working to reduce our impact on the environment by adding water
Recycle and promote recycling. Together with ours
Bottling partners, we employ and produce more than 700,000 people
thus economic opportunities in local communities around the world. to learn
See more under Coca-Cola Journey on our website www.coca-colacompany.com
or follow us twitter.
Instagram,
Facebook
and LinkedIn.

The Fairlife® brand is owned by Fairlife LLC, our joint
Take part in Select Milk Producers Inc. Fairlife products are manufactured by
our company and some of our bottling partners.

Forward-looking statements

This press release contains all statements, estimates or projections that
as defined by US securities laws as
"Forward-looking statements" apply. In general
forward-looking statements for words like "believe", "expect"
"Intention", "estimating", "assuming", "predicting"
"Wanting", "planning", "requesting" and so on to recognize themselves
usually not referring to the past. However, the absence means
Such words or similar expressions do not mean that they are not
forward-looking statements. Forward-looking statements
are subject to certain risks and uncertainties that may result
that the actual results are significant from the experience
and the current expectations or forecasts of the Coca-Cola Company
can differ. These risks & # 39; s include you. a. Obesity and
other health problems, water shortage and bad
Water quality, evolving consumer tastes,
increased competition, problems related to product safety
and product quality, allegedly harmful consequences
certain ingredients such as non-nutritive sweeteners, biotechnologically
produced substances and other substances in ours
Beverage products or packaging materials are unsuccessful
Innovation work, increased demand for food products and
reduced agricultural productivity, the inability of ours
To protect information systems against business interruptions,
Data theft or security breaches, changes to the
Retail market or the loss of major retail customers.
or catering company, inability to do business
Development of emerging markets, exchange rate fluctuations, interest rate rises,
the inability to have good relations with our bottling partners
maintain a deterioration in the financial position
our bottling partners, increase in income tax, changes in
Tax laws or unfavorable decisions in tax matters,
increased or new indirect taxes in the US and the rest of the world,
failure, economic benefits or inability to
possible negative consequences of our productivity initiatives
to deal with the inability to become a highly qualified and
the diversification and retention of workforce, increased
Costs, interruptions of the supply or scarcity of energy and fuel,
increased costs, supply interruptions or scarcity of ingredients,
other raw materials, packaging materials, aluminum cans and
other containers, changes in laws and regulations in the
Connection with beverage containers and packaging, essential
additional requirements regarding labeling or warnings or
Restrictions on the marketing or sale of our products,
adverse general economic conditions in the US unfavorable
economic or political conditions in international markets,
Disputes or legal proceedings, failure, trademarks,
Protect formulas and other intellectual property in the right way or
Disputes, adverse weather conditions, climate change,
Damage to our image or our reputation by negative
public attention, even if it is unfounded, in the
Related to the safety and quality of our products, the human being
and employee rights, obesity or other concerns, changes
Non-compliance with applicable laws and regulations
Our products or our companies can be changed by
Accounting standards, the inability of our long term
Achieve growth objectives, aggravation of the global
Credit market conditions, insolvency or bankruptcy of one or more
some of our financial partners, the inability to make collective agreements
to renew reasonable conditions or, us or ours
Bottling partners are from strikes, work interruptions or
Unrest among employees, future amortization of goodwill,
Pension obligations from pension plans of various employers,
the inability of our own or our managed bottling plant
or successfully integrate other purchased companies or brands
and manage the inability to re-franchise our activities
successfully manage the failure to be an essential part of it
expected benefits of our strategic partnership with Monster
realize, global or regional catastrophic events, risks & # 39; s
and uncertainties related to the transaction, including the
Risk that the company will not integrate successfully or that
Such an integration is more difficult, time-consuming or more costly
is as expected, resulting in extra burden on our resources,
Systems, procedures and controls, interruptions of our ongoing
Business activity and distraction from the management's attention
of other business concerns could lead to the possibility that
Certain assumptions regarding Costa or the transaction appear to be incorrect
the absence of, the late receipt of or could prove
Unacceptable or stressful circumstances related to everyone
required legal approvals and compliance with the
Closing conditions of the transaction, the possible failure, important
Employees as a result of the proposed transaction or during the
Integration of companies to receive and disruptions due to
proposed transaction, maintaining business relationships
can be the reaction of customers, policyholders,
Brokers, service providers, business partners and government agencies on the
Disclosure of the transaction and other risks associated with the filings
the company with the Securities and Exchange Commission (SEC),
including the annual report on Form 10-K for the financial year
on 31 December 2017 and the subsequent quarterly reports
Form 10-Q, filed with the SEC.
You should not have excessive confidence in forward-looking statements
because they are only valid at the time of publication. the
Coca-Cola Company can not make any commitments in the
forward-looking statements expressed or implied expectations
fulfilled and accepts no obligation
forward-looking statements as a result of new information, future
To publicly update or otherwise publicly or otherwise
unless otherwise required by law.

Non-GAAP financial measures

This release contains the mention of EBITDA or the
underlying result before interest, taxes, depreciation and amortization
Amortization, excluding income from joint ventures and
Proceeds from Costa in the fiscal year 2018 (as of 1 March 2018), which as
non-GAAP measurements as promulgated by the SEC
Prescription G is being considered. Costa uses a number
Key figures to monitor financial performance, including
international accounting standards (International Financial
Reporting Standards, IFRS) corresponding legal ratios
alternative performance statistics used to evaluate it
Company performance is used internally, and that of the
Management and investors useful additional information about
to deliver the financial performance of Costa & # 39; s activities. the
underlying profitability ratios & # 39; s represent the corresponding
IFRS key figures adjusted for specific items because
Costa considers them relevant, either for the financial performance of the
Company from one period to the next or with other similar
Compare companies. The calculation of EBITDA for the 52 weeks
from 1 March 2018 is as follows:

Million GBP

Underlying income before tax

158.3

Income from joint ventures

(0.2)

Net financial income

0.6

Underlying depreciation and amortization

79.5

Underlying EBITDA

238.2

The above unchecked historical financial information for
Costa had no noteworthy adjustments to the underlying value
Consolidation requirements that are derived for the preparation of the
consolidated annual report for the financial year ending on 1 March 2018
used by Whitbread PLC.

EBITDA is not a measure of profit in the sense of GAAP and has no
standardized meaning prescribed by GAAP; accordingly
EBITDA may not match similar statistics from others
Companies are listed on the stock exchange, comparable. EBITDA should be considered as an addition
on operating profit, cash flow, profit or other financial interests
or counters that are in accordance with
GAAP and may not be used as a substitute for or as
are considered superior to that. EBITDA is not perfect
representative measure of historical performance or performance
future potential of Costa.

The source language in which the original text has been published is
the official and authorized version. Translations become
better communication included. Only the language version in the
The original has been published, is valid. Do the same
Translations with the original language version of the publication.


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