The FINANCIAL -- Provides Potential Global Growth Platform for Aujan
Brands and Positions The Coca-cola Company as a Leader in High-Growth
Middle East Non-Carbonated Beverages Sector
Largest-Ever Investment by Multinational Firm in Middle East's Fast Moving Consumer Goods Sector
DUBAI, United Arab Emirates, Dec. 14, 2011 - Aujan Industries, one of the largest independent beverage companies in the Middle East, and The Coca-cola Company announced a binding agreement for The Coca-cola Company to acquire approximately half of the equity in Aujan's existing beverage business.
Once closed, this $980 million 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 transaction will present The Coca-cola Company a significant equity stake in one of the leading still beverage businesses in the Middle East.
This transaction represents the largest-ever investment by a multinational firm in the Middle East's fast moving consumer goods sector, reflecting the strength of Aujan's operations. 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 $850 million. Under the terms of the agreement, The Coca-cola Company will acquire 50 percent of the Aujan entity that holds the rights to Aujan-owned brands, and 49 percent of Aujan's bottling and distribution company. The licensed brand Vimto will remain with the Aujan-managed bottling and distribution company.
The Coca-cola system -- which currently employs more than 40,000 people across the Arab world -- announced in October 2011 that it will invest $5 billion in the Middle East and North Africa region over the next 10 years.
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