Conclusion
The consumer market for beverages is rapidly evolving. Major beverage companies must adapt to this changing business model in order to stay ahead of the competition and continue to grow profits. Companies like Coca-Cola and PepsiCo continue to buy up rival beverage brands, and now they have begun a period of vertical integration. This trend involves acquiring bottling partners’ operations around the world, but starting in North America first. Coca-Cola’s acquisition of substantial assets from CCE was accomplished at a price which included no market premium. Coke expects synergies of $350 million or more in a deal valued at $12.3 billion. The value the firm has obtained in this acquisition and subsequent reorganization of its North American unit, has already begun to become clear. While the industry climate continues to hit beverage makers with increasing costs and shifting demand patterns, Coca-Cola is taking strides through M&A activity to effect long-term top and bottom-line growth. The Coke/CCE acquisition goes straight to the core of Coca-Cola’s broader market strategy that puts heavy importance on continued rapid M&A. This strategy will help Coca-Cola continue to be the world leader in beverages.
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
Showing posts with label coca cola enterprises. Show all posts
Showing posts with label coca cola enterprises. Show all posts
Sunday, May 29, 2011
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
While specific figures regarding these synergies have not been made public, benchmarking PepsiCo’s success with the acquisition of its bottling partners is not difficult. As the bottling business is naturally less profitable than that of selling syrups, it is natural to expect PepsiCo’s gross margin percentage to head lower post-merger. This reality is taken into account with a reminder that the macroeconomic trend in North America is decreasing carbonated beverage consumption per capita. Further, PepsiCo issued millions of new shares of common stock when it acquired its two largest bottling partners. Despite these factors, which have all negatively impacted the company’s earnings per share (EPS), PepsiCo’s third-quarter 2010 EPS came to $1.19, up 10 cents from the prior year quarter, which was also prior to the M&A activity.[ Alazraki, Melly. "PepsiCo Earnings, Revenue Rise on Bottlers Acquisition." DailyFinance. 7 Oct. 2010. Web. 01 May 2011. http://www.dailyfinance.com/2010/10/07/pepsico-earnings-revenue-rise-on-bottlers-acquisition/ .] This suggests that at least some synergies were recognized right away from the first-quarter 2010 mergers, and it’s those cost reductions which fought the negative headwinds facing PepsiCo. The result is significantly higher EPS. Without specific synergy figures from the company, a bit of deduction suggests that PepsiCo’s CEO Nooyi is telling the truth, and that significant cost savings from the merger are unfolding. This relationship translates to Coca-Cola’s acquisition of CCE, as the transactions almost mirror one another. The likelihood of Coca-Cola realizing significant cost savings, and therefore bottom-line growth, from its acquisition of CCE’s North American operations is a virtual certainty.
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Implementation Analysis: Likelihood of Acquisition Success
The Coca-Cola/CCE acquisition came to agreement roughly a year ago, with closure of the deal about two quarters ago. The company has not let on yet about synergies realized from the transaction. Therefore, an analysis of the results from PepsiCo’s M&A deal with Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) may be a solid indicator of what Coca-Cola should expect. PepsiCo’s deal occurred roughly a year earlier, with agreement coming on August 4, 2009, and closure on February 26, 2010 after shareholders of both PBG and PAS completed shareholder elections of the form of consideration most desired.[ "PepsiCo Announces Final Results of Elections Regarding Merger Consideration for Bottler Acquisitions." PepsiCo. 2 Mar. 2010. Web. 01 May 2011. http://www.pepsico.com/PressRelease/PepsiCo-Announces-Final-Results-of-Elections-Regarding-Merger-Consideration-for-03022010.html .] As it turned out, all PBG and PAS shareholders who elected to receive cash in lieu of any consideration of PepsiCo stock had their desire met. The rest of PBG and PAS shareholders received roughly 50% of the value of their shares in cash and the other 50% in shares of PepsiCo stock.
According to a publication called “Daily Finance,” an interpretation of PepsiCo’s third-quarter 2010 financial results reads as follows: “The American beverage business saw volume, net revenue and operating profit results driven by the favorable impact of the bottling acquisitions, synergies and improving sequential organic volume trends across the product portfolio in North America.”[ Alazraki, Melly. "PepsiCo Earnings, Revenue Rise on Bottlers Acquisition." DailyFinance. 7 Oct. 2010. Web. 01 May 2011. http://www.dailyfinance.com/2010/10/07/pepsico-earnings-revenue-rise-on-bottlers-acquisition/ .] This assessment was made more firm when Indra Nooyi, PepsiCo CEO, said during the company’s first-quarter 2011 earnings call, “We hit the first anniversary of the bottler acquisitions in the first-quarter, and the synergies are ahead of original estimates. We have made the operational organization changes necessary to realize the cost synergies, and we're beginning to realize the revenue synergies now.”[ "PepsiCo's CEO Discusses Q1 2011 Results - Earnings Call Transcript." Seeking Alpha. 28 Apr. 2011. Web. 01 May 2011. http://seekingalpha.com/article/266334-pepsico-s-ceo-discusses-q1-2011-results-earnings-call-transcript .] From these short-term assessments, it appears that Coca-Cola should expect exceptional cost synergies to emerge, especially around or after the one-year anniversary of the deal completion.
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
The Coca-Cola/CCE acquisition came to agreement roughly a year ago, with closure of the deal about two quarters ago. The company has not let on yet about synergies realized from the transaction. Therefore, an analysis of the results from PepsiCo’s M&A deal with Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) may be a solid indicator of what Coca-Cola should expect. PepsiCo’s deal occurred roughly a year earlier, with agreement coming on August 4, 2009, and closure on February 26, 2010 after shareholders of both PBG and PAS completed shareholder elections of the form of consideration most desired.[ "PepsiCo Announces Final Results of Elections Regarding Merger Consideration for Bottler Acquisitions." PepsiCo. 2 Mar. 2010. Web. 01 May 2011. http://www.pepsico.com/PressRelease/PepsiCo-Announces-Final-Results-of-Elections-Regarding-Merger-Consideration-for-03022010.html .] As it turned out, all PBG and PAS shareholders who elected to receive cash in lieu of any consideration of PepsiCo stock had their desire met. The rest of PBG and PAS shareholders received roughly 50% of the value of their shares in cash and the other 50% in shares of PepsiCo stock.
According to a publication called “Daily Finance,” an interpretation of PepsiCo’s third-quarter 2010 financial results reads as follows: “The American beverage business saw volume, net revenue and operating profit results driven by the favorable impact of the bottling acquisitions, synergies and improving sequential organic volume trends across the product portfolio in North America.”[ Alazraki, Melly. "PepsiCo Earnings, Revenue Rise on Bottlers Acquisition." DailyFinance. 7 Oct. 2010. Web. 01 May 2011. http://www.dailyfinance.com/2010/10/07/pepsico-earnings-revenue-rise-on-bottlers-acquisition/ .] This assessment was made more firm when Indra Nooyi, PepsiCo CEO, said during the company’s first-quarter 2011 earnings call, “We hit the first anniversary of the bottler acquisitions in the first-quarter, and the synergies are ahead of original estimates. We have made the operational organization changes necessary to realize the cost synergies, and we're beginning to realize the revenue synergies now.”[ "PepsiCo's CEO Discusses Q1 2011 Results - Earnings Call Transcript." Seeking Alpha. 28 Apr. 2011. Web. 01 May 2011. http://seekingalpha.com/article/266334-pepsico-s-ceo-discusses-q1-2011-results-earnings-call-transcript .] From these short-term assessments, it appears that Coca-Cola should expect exceptional cost synergies to emerge, especially around or after the one-year anniversary of the deal completion.
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Regulatory and Shareholder Approval of the Transaction
From a regulatory perspective, this M&A deal almost exactly mirrors the 2009 transaction whereby PepsiCo acquired its two largest bottling partners. In that deal, both Pepsi Bottling Group and PepsiAmericas had existing bottling and distribution agreements with the Dr. Pepper Snapple Group for certain beverage products. Coincidentally, the same agreement exists between Dr. Pepper and CCE in which the latter bottles and distributes the former’s products throughout various North American geographic segments. In an identical decision, the Federal Trade Commission has decreed that the Coke/CCE deal may only come to fruition if the former sets up an information “firewall” that would prevent certain Coca-Cola employees from gaining access to competitive information that Dr. Pepper has shared with CCE under its existing bottling agreement.[ "FTC Puts Conditions on Coca-Cola's $12.3 Billion Acquisition of Its Largest North American Bottler." Federal Trade Commission. 27 Sept. 2010. Web. 29 Apr. 2011. http://www.ftc.gov/opa/2010/09/coke.shtm .] This position by the FTC is intended to prevent the release of Dr. Pepper’s proprietary business information and therefore eliminate potential conflicts of interest inherent to the business landscape.
In one final regulatory move, the Canadian Competition Bureau approved this acquisition in the fall of 2010.[ "Coca-Cola - Press Center - Press Kits - Regulatory Clearance For CCE Acquisition." Coca-Cola: The Coca-Cola Company. 27 Sept. 2010. Web. 29 Apr. 2011. http://www.thecoca-colacompany.com/dynamic/press_center/2010/09/the-coca-cola-company-obtains-regulatory-clearance-for-acquisition-of-cces-north-american-business.html .] As CCE engages in limited bottling and distribution activities in Canada, this approval was necessary before a complete acquisition could be made by Coca-Cola. Separately, the final seal of approval on the deal comes from current CCE shareholders, whose investment position is likely to alter significantly if the acquisition goes through as planned. The new CCE they will be shareholders of will focus almost exclusively on bottling and distribution of Coca-Cola products in Europe. This focus will be enhanced by CCE’s counter-acquisition of Coke’s Swedish and Norwegian bottling operations, and the later option of purchasing Coke’s German bottling operations at fair value, a major discount from what an outside party would have to pay. Regarding approval of the entire deal, CCE shareholders were scheduled to have a vote on the morning of October 1st, 2010. According to a CCE announcement, enough shareholders approved the acquisition, and execution of the deal is to begin immediately.[ Geller, Martinne, and Brad Dorfman. "Coke Enterprises' Shareholders Approve Coke Deal." Reuters.com. 01 Oct. 2010. Web. 29 Apr. 2011. http://www.reuters.com/article/2010/10/01/us-cocacolaenterprises-idUSTRE6903E720101001 .]
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
From a regulatory perspective, this M&A deal almost exactly mirrors the 2009 transaction whereby PepsiCo acquired its two largest bottling partners. In that deal, both Pepsi Bottling Group and PepsiAmericas had existing bottling and distribution agreements with the Dr. Pepper Snapple Group for certain beverage products. Coincidentally, the same agreement exists between Dr. Pepper and CCE in which the latter bottles and distributes the former’s products throughout various North American geographic segments. In an identical decision, the Federal Trade Commission has decreed that the Coke/CCE deal may only come to fruition if the former sets up an information “firewall” that would prevent certain Coca-Cola employees from gaining access to competitive information that Dr. Pepper has shared with CCE under its existing bottling agreement.[ "FTC Puts Conditions on Coca-Cola's $12.3 Billion Acquisition of Its Largest North American Bottler." Federal Trade Commission. 27 Sept. 2010. Web. 29 Apr. 2011. http://www.ftc.gov/opa/2010/09/coke.shtm .] This position by the FTC is intended to prevent the release of Dr. Pepper’s proprietary business information and therefore eliminate potential conflicts of interest inherent to the business landscape.
In one final regulatory move, the Canadian Competition Bureau approved this acquisition in the fall of 2010.[ "Coca-Cola - Press Center - Press Kits - Regulatory Clearance For CCE Acquisition." Coca-Cola: The Coca-Cola Company. 27 Sept. 2010. Web. 29 Apr. 2011. http://www.thecoca-colacompany.com/dynamic/press_center/2010/09/the-coca-cola-company-obtains-regulatory-clearance-for-acquisition-of-cces-north-american-business.html .] As CCE engages in limited bottling and distribution activities in Canada, this approval was necessary before a complete acquisition could be made by Coca-Cola. Separately, the final seal of approval on the deal comes from current CCE shareholders, whose investment position is likely to alter significantly if the acquisition goes through as planned. The new CCE they will be shareholders of will focus almost exclusively on bottling and distribution of Coca-Cola products in Europe. This focus will be enhanced by CCE’s counter-acquisition of Coke’s Swedish and Norwegian bottling operations, and the later option of purchasing Coke’s German bottling operations at fair value, a major discount from what an outside party would have to pay. Regarding approval of the entire deal, CCE shareholders were scheduled to have a vote on the morning of October 1st, 2010. According to a CCE announcement, enough shareholders approved the acquisition, and execution of the deal is to begin immediately.[ Geller, Martinne, and Brad Dorfman. "Coke Enterprises' Shareholders Approve Coke Deal." Reuters.com. 01 Oct. 2010. Web. 29 Apr. 2011. http://www.reuters.com/article/2010/10/01/us-cocacolaenterprises-idUSTRE6903E720101001 .]
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Major Legal and Financial Players in the M&A Deal
Exhibit 8[ "The Coca-Cola Company and Coca-Cola Enterprises Strategically Advance and Strengthen Their Partnership." Business Wire. 25 Feb. 2010. Web. 29 Apr. 2011. http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view .] presents a schedule of firms that were involved in the Coca-Cola/CCE acquisition transaction. Interested parties include law firms, investment banking firms, a consulting firm, and several other players including the Federal Trade Commission and the shareholders of the acquired company, CCE. Coca-Cola has used law firm Skadden, Arps, Slate, Meagher & Flom for M&A legal services several times in the past, including Coke’s 2007 acquisition of Energy Brands, the owner of Glaceau, the maker of VitaminWater.[ "Skadden Represents Coca-Cola in Its Acquisition of Glaceau." Skadden. May 2007. Web. 29 Apr. 2011. http://www.skadden.com/Index.cfm?contentID=42 .] Other Coke acquisitions Skadden advised on include the company’s initial equity stake in Honest Tea, and the company’s busted $2.4 billion bid for Chinese juice maker Huiyuan Juice Group, Ltd.[ Lee, Lisa, and Amy Wu. "Skadden Breaks out the Bubbly." The Deal LLC. 12 Sept. 2008. Web. 29 Apr. 2011. http://www.thedeal.com/magazine/ID/019462/dealmakers/deal-diary.php .]
Also of note in this deal was CCE’s employment of law firm McKenna Long & Aldridge and consultant Greenhill & Company to interact directly with the company’s Special Committee to the Board of Directors regarding the deal. By involving separate firms to deal with a special committee, CCE was able to avoid most conflicts of interest with senior company management that could have arisen. This practice is commendable and indicative of due diligence on the part of both beverage companies.
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
Exhibit 8[ "The Coca-Cola Company and Coca-Cola Enterprises Strategically Advance and Strengthen Their Partnership." Business Wire. 25 Feb. 2010. Web. 29 Apr. 2011. http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view .] presents a schedule of firms that were involved in the Coca-Cola/CCE acquisition transaction. Interested parties include law firms, investment banking firms, a consulting firm, and several other players including the Federal Trade Commission and the shareholders of the acquired company, CCE. Coca-Cola has used law firm Skadden, Arps, Slate, Meagher & Flom for M&A legal services several times in the past, including Coke’s 2007 acquisition of Energy Brands, the owner of Glaceau, the maker of VitaminWater.[ "Skadden Represents Coca-Cola in Its Acquisition of Glaceau." Skadden. May 2007. Web. 29 Apr. 2011. http://www.skadden.com/Index.cfm?contentID=42 .] Other Coke acquisitions Skadden advised on include the company’s initial equity stake in Honest Tea, and the company’s busted $2.4 billion bid for Chinese juice maker Huiyuan Juice Group, Ltd.[ Lee, Lisa, and Amy Wu. "Skadden Breaks out the Bubbly." The Deal LLC. 12 Sept. 2008. Web. 29 Apr. 2011. http://www.thedeal.com/magazine/ID/019462/dealmakers/deal-diary.php .]
Also of note in this deal was CCE’s employment of law firm McKenna Long & Aldridge and consultant Greenhill & Company to interact directly with the company’s Special Committee to the Board of Directors regarding the deal. By involving separate firms to deal with a special committee, CCE was able to avoid most conflicts of interest with senior company management that could have arisen. This practice is commendable and indicative of due diligence on the part of both beverage companies.
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
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Coca-Cola M&A Activity: Company Portfolio Analysis (3)
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Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
For Coca-Cola, gaining the type of cash flow and synergies that CCE North America brings came at a cheap price. To pay fair value for such a large business, with assets of $12.3 billion, is a phenomenal deal for Coke. Within Coca-Cola, a major reorganization has begun that will combine the acquired assets from CCE with other company segments to create a new, overarching business segment known as Coca-Cola Refreshments (CCR). This unit will be lead by the former President of the North American business unit with CCE, Steve Cahillane.[ "The Coca-Cola Company Finalizes Transaction with Coca-Cola Enterprises." Reuters.com. 3 Oct. 2010. Web. 4 May 2011. http://www.reuters.com/article/2010/10/03/idUS44374+03-Oct-2010+BW20101003 .] Accordingly, his expertise with the business should prove invaluable to Coca-Cola in bringing the unit in-house. The new CCR unit at Coca-Cola will be a combination of: “(1) CCE North America; (2) CCNA (Coca-Cola North America) Foodservice; (3) the Minute Maid and Odwalla juice businesses, (4) CCNA Supply Chain Operations, and (5) the Company-owned bottling operations in Philadelphia.”[ Ibid. ]
Whether the Coca-Cola/CCE deal will ultimately prove a fruitful endeavor for Coke is no question. By cutting out a layer of management and eliminating the entire CCE shareholder base from equity interest in the North American segment, Coca-Cola will undoubtedly realize massive synergies. Being such a recent deal, it is difficult to determine the types of synergies that Coke is seeing so far. As it turns out, Coca-Cola’s 2011 first quarter earnings report was released on April 26th, 2011, and indicates positive results for the acquisition so far. The company’s net revenue jumped 40%[ "2011 First Quarter Results." Coca-Cola: The Coca-Cola Company. 26 Apr. 2011. Web. 04 May 2011. http://www.thecoca-colacompany.com/dynamic/press_center/2011/04/2011-first-quarter-financial-results.html .] from the comparable period last year, giving clear indication as to the magnitude of this acquisition. The company says in its report, “Coca-Cola Refreshments (CCR) integration efforts are on plan, with expected 2011 net cost synergies of $140 to $150 million.”[ Ibid. ] Of the estimated $350 million in total synergies over four years, this is clearly a solid start to the first year of combined operations. The long-term success of the deal is a matter for further discussion, and is given consideration later on in this paper.
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
Whether the Coca-Cola/CCE deal will ultimately prove a fruitful endeavor for Coke is no question. By cutting out a layer of management and eliminating the entire CCE shareholder base from equity interest in the North American segment, Coca-Cola will undoubtedly realize massive synergies. Being such a recent deal, it is difficult to determine the types of synergies that Coke is seeing so far. As it turns out, Coca-Cola’s 2011 first quarter earnings report was released on April 26th, 2011, and indicates positive results for the acquisition so far. The company’s net revenue jumped 40%[ "2011 First Quarter Results." Coca-Cola: The Coca-Cola Company. 26 Apr. 2011. Web. 04 May 2011. http://www.thecoca-colacompany.com/dynamic/press_center/2011/04/2011-first-quarter-financial-results.html .] from the comparable period last year, giving clear indication as to the magnitude of this acquisition. The company says in its report, “Coca-Cola Refreshments (CCR) integration efforts are on plan, with expected 2011 net cost synergies of $140 to $150 million.”[ Ibid. ] Of the estimated $350 million in total synergies over four years, this is clearly a solid start to the first year of combined operations. The long-term success of the deal is a matter for further discussion, and is given consideration later on in this paper.
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola’s Acquisition of CCE’s North American Operations
Deal Structure
The structure of the Coca-Cola/CCE deal follows in Exhibit 7. Coca-Cola will be relinquishing its 34% equity stake in CCE, valued at $3.4 billion approximately. Coca-Cola, in a position against the industry trend, owns a few bottling operations overseas. The company will offer the Norwegian and Swedish operations over to CCE, and an option for CCE to acquire an 83% stake in the major German bottling unit for fair value in 18-36 months post-deal closure. In exchange, CCE will be giving Coca-Cola all of its North American bottling operations, valued at roughly $3.4 billion, as well as $822 million in cash. There were no competing bids in this transaction, as no outside parties were aware the deal was in progress. Given the industry trend toward bottler consolidation, analysts surely might have expected this acquisition, though no other bidders were involved in the deal-making process.
The deal is largely thought to be at fair value. Exhibit 7 shows the equal valuations of CCE’s North American operations and Coke’s equity stake in the company, at $3.4 billion. Coca-Cola has also indicated the swap of $822 million for Coke’s Norway and Sweden bottling operations to be an equivalent component. The basis for this fair value swap lies in the relationship between the companies that has precipitated over the many years of both companies’ history. CCE realizes that virtually all of its success has been at the hand of Coca-Cola. Coke has helped the company merge with smaller bottling partners, and has continued to maintain franchising agreements with CCE that shareholders perceive as being very fair. As such, CCE would not have allowed a competitive bidding process to emerge for its North American unit. At the same time, a practical look at the deal points out that Coca-Cola could in the future refuse to renew the franchising contract with CCE. Should that happen, Coca-Cola would surely endure a massive blow to revenue, but with almost 200[ "About Us: Our Heritage: CCE Timeline: The Evolution of Coca-Cola Bottling and CCE." Coca-Cola Enterprises. Web. 29 Apr. 2011. http://www.cokecce.com/pages/allContent.asp?page_id=88 .] other independent bottling partners in the US alone, it’s likely the company could make up production elsewhere given time. CCE on the other hand, with no franchising contract with Coca-Cola, would face a complete shutdown and possible bankruptcy. Coca-Cola’s franchising model holds all the leverage, meaning that CCE really didn’t have much choice in this matter. Coke decided it was time to streamline operations by acquiring the bottler’s operations in the US and Canada, and CCE, wanting to maintain goodwill with the company, agreed to become entirely Europe-focused with the addition of two small bottling units in Norway and Sweden.
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
Deal Structure
The structure of the Coca-Cola/CCE deal follows in Exhibit 7. Coca-Cola will be relinquishing its 34% equity stake in CCE, valued at $3.4 billion approximately. Coca-Cola, in a position against the industry trend, owns a few bottling operations overseas. The company will offer the Norwegian and Swedish operations over to CCE, and an option for CCE to acquire an 83% stake in the major German bottling unit for fair value in 18-36 months post-deal closure. In exchange, CCE will be giving Coca-Cola all of its North American bottling operations, valued at roughly $3.4 billion, as well as $822 million in cash. There were no competing bids in this transaction, as no outside parties were aware the deal was in progress. Given the industry trend toward bottler consolidation, analysts surely might have expected this acquisition, though no other bidders were involved in the deal-making process.
The deal is largely thought to be at fair value. Exhibit 7 shows the equal valuations of CCE’s North American operations and Coke’s equity stake in the company, at $3.4 billion. Coca-Cola has also indicated the swap of $822 million for Coke’s Norway and Sweden bottling operations to be an equivalent component. The basis for this fair value swap lies in the relationship between the companies that has precipitated over the many years of both companies’ history. CCE realizes that virtually all of its success has been at the hand of Coca-Cola. Coke has helped the company merge with smaller bottling partners, and has continued to maintain franchising agreements with CCE that shareholders perceive as being very fair. As such, CCE would not have allowed a competitive bidding process to emerge for its North American unit. At the same time, a practical look at the deal points out that Coca-Cola could in the future refuse to renew the franchising contract with CCE. Should that happen, Coca-Cola would surely endure a massive blow to revenue, but with almost 200[ "About Us: Our Heritage: CCE Timeline: The Evolution of Coca-Cola Bottling and CCE." Coca-Cola Enterprises. Web. 29 Apr. 2011. http://www.cokecce.com/pages/allContent.asp?page_id=88 .] other independent bottling partners in the US alone, it’s likely the company could make up production elsewhere given time. CCE on the other hand, with no franchising contract with Coca-Cola, would face a complete shutdown and possible bankruptcy. Coca-Cola’s franchising model holds all the leverage, meaning that CCE really didn’t have much choice in this matter. Coke decided it was time to streamline operations by acquiring the bottler’s operations in the US and Canada, and CCE, wanting to maintain goodwill with the company, agreed to become entirely Europe-focused with the addition of two small bottling units in Norway and Sweden.
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
Coca-Cola CCE Merger: Table of Contents and Works Cited List
TABLE OF CONTENTS
Executive Summary 3
Introduction to the Beverage Industry
Introduction 4
Product Trends 6
Demand and Economic Trends 6
Business Model Trends in the Beverage Industry 8
Industry M&A Analysis
Strategic Objectives of Coca-Cola’s M&A Activity 11
Coca-Cola M&A Portfolio Analysis 15
PepsiCo M&A Portfolio Analysis (Largest Competitor) 18
Other Beverage Industry M&A Analysis 22
Analysis of the Coca-Cola/CCE M&A Deal
Coca-Cola’s Acquisition of CCE’s North American Operations 23
Major Legal and Financial Players in the M&A Deal 26
Regulatory and Shareholder Approval of the Transaction 27
Implementation Analysis: Likelihood of Acquisition Success 28
Conclusion 29
References 30
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
References
"2011 First Quarter Results." Coca-Cola: The Coca-Cola Company. 26 Apr. 2011. Web. 04 May 2011. http://www.thecoca-colacompany.com/dynamic/press_center/2011/04/2011-first-quarter-financial-results.html .
"About Us: Our Heritage: CCE Timeline: The Evolution of Coca-Cola Bottling and CCE." Coca-Cola Enterprises. Web. 29 Apr. 2011. http://www.cokecce.com/pages/allContent.asp?page_id=88 .
Alazraki, Melly. "PepsiCo Earnings, Revenue Rise on Bottlers Acquisition." DailyFinance. 7 Oct. 2010. Web. 01 May 2011.
http://www.dailyfinance.com/2010/10/07/pepsico-earnings-revenue-rise-on-bottlers-acquisition/ .
"Beverage Industry Trends." Chem.Info. Chem.Insider Daily, 8 Mar. 2010. Web. 30 Apr. 2011. http://www.chem.info/Articles/2010/03/Plant-Operations-Beverage-Industry-Trends/ .
Buckley, Chris. "China Says Rejection of Coke-Huiyuan Deal No Blow to Open Trade." Reuters.com. 19 Mar. 2009. Web. 29 Apr. 2011. http://www.reuters.com/article/2009/03/19/us-cocacola-huiyuan-china-idUSTRE52I27120090319 .
Chazan, Guy. "Pepsi to Buy Wimm-Bill-Dann of Russia for $5.8 Billion." The Wall Street Journal. 3 Dec. 2010. Web. 01 May 2011. http://online.wsj.com/article/SB10001424052748703377504575650252777195806.html .
"Coca-Cola - Press Center - Press Kits - Regulatory Clearance For CCE Acquisition." Coca-Cola: The Coca-Cola Company. 27 Sept. 2010. Web. 29 Apr. 2011. http://www.thecoca-colacompany.com/dynamic/press_center/2010/09/the-coca-cola-company-obtains-regulatory-clearance-for-acquisition-of-cces-north-american-business.html .
"Coca-Cola New Plant Bottle." The EnviroMedia Greenwashing Index. 6 Apr. 2010. Web. 30 Apr. 2011. http://www.greenwashingindex.com/ad_single.php?id=7083 .
"FTC Puts Conditions on Coca-Cola's $12.3 Billion Acquisition of Its Largest North American Bottler." Federal Trade Commission. 27 Sept. 2010. Web. 29 Apr. 2011. http://www.ftc.gov/opa/2010/09/coke.shtm .
"FTC Puts Conditions on PepsiCo's $7.8 Billion Acquisition of Two Largest Bottlers and Distributors." Federal Trade Commission. 26 Feb. 2010. Web. 01 May 2011. http://www.ftc.gov/opa/2010/02/pepsi.shtm .
Geller, Martinne, and Brad Dorfman. "Coke Enterprises' Shareholders Approve Coke Deal." Reuters.com. 01 Oct. 2010. Web. 29 Apr. 2011. http://www.reuters.com/article/2010/10/01/us-cocacolaenterprises-idUSTRE6903E720101001 .
Hall, Eudell. "Pepsi Conserves Water with Gatorade." American Public Media. 19 Nov. 2008. Web. 1 May 2011. http://marketplace.publicradio.org/display/web/2008/11/19/pepsi/ .
Kaczanowska, Agata. Carbonated Soft Drink Production in the US. Rep. no. 31211a. IBISWorld Industry Report, 2011. Print.
Lee, Lisa, and Amy Wu. "Skadden Breaks out the Bubbly." The Deal LLC. 12 Sept. 2008. Web. 29 Apr. 2011. http://www.thedeal.com/magazine/ID/019462/dealmakers/deal-diary.php .
"Mergers and Acquisitions Heat Up in Food and Beverage Industry." Logistics Consultants, Supply Chain Systems, Warehouse and Distribution Consulting. Web. 01 May 2011. http://www.tompkinsinc.com/industries/mergers-acquisitions/mergers-acquisitions-food-beverage.asp .
"Our Business at a Glance." Coca-Cola Enterprises. 2007. Web. 29 Apr. 2011. http://www.cokecce.com/brochures/cce_2005/02_atglance.html .
"Our Territories: Overview." Coca-Cola Enterprises. 2010. Web. 01 May 2011. http://www.cokecce.com/pages/_content.asp?page_id=95 .
"Pepsi Buys Quaker in $13.4B Stock Deal." ABC News. 4 Dec. 2001. Web. 01 May 2011. http://abcnews.go.com/Business/story?id=88989 .
"PepsiCo Announces Final Results of Elections Regarding Merger Consideration for Bottler Acquisitions." PepsiCo. 2 Mar. 2010. Web. 01 May 2011. http://www.pepsico.com/PressRelease/PepsiCo-Announces-Final-Results-of-Elections-Regarding-Merger-Consideration-for-03022010.html .
"PepsiCo, Coca-Cola Roll Out Recycling Initiatives." Environmental Leader. 3 June 2010. Web. 01 May 2011. http://www.environmentalleader.com/2010/06/03/pepsico-coca-cola-roll-out-recycling-initiatives/ .
"PepsiCo's CEO Discusses Q1 2011 Results - Earnings Call Transcript." Seeking Alpha. 28 Apr. 2011. Web. 01 May 2011. http://seekingalpha.com/article/266334-pepsico-s-ceo-discusses-q1-2011-results-earnings-call-transcript .
"PepsiCo Reaches Merger Agreements with Pepsi Bottling Group and PepsiAmericas." PepsiCo. 4 Aug. 2009. Web. 01 May 2011. http://www.pepsico.com/PressRelease/PepsiCo-Reaches-Merger-Agreements-with-Pepsi-Bottling-Group-and-PepsiAmericas08042009.html .
Platt, Gordon. "Pepsi Puts Some Fizz Back in M&A Market." Global Finance Magazine. June 2009. Web. 1 May 2011. http://www.gfmag.com/archives/100-june-2009/1833-regulars-finance-mergers-a-acquisitions.html#axzz1Kqmf5N9W .
"Skadden Represents Coca-Cola in Its Acquisition of Glaceau." Skadden. May 2007. Web. 29 Apr. 2011. http://www.skadden.com/Index.cfm?contentID=42 .
"The Coca-Cola Company." Wikipedia, the Free Encyclopedia. Web. 29 Apr. 2011. http://en.wikipedia.org/wiki/The_Coca-Cola_Company .
"The Coca-Cola Company and Coca-Cola Enterprises Strategically Advance and Strengthen Their Partnership." Business Wire. 25 Feb. 2010. Web. 29 Apr. 2011. http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view .
"The Coca-Cola Company Finalizes Transaction with Coca-Cola Enterprises." Reuters.com. 3 Oct. 2010. Web. 4 May 2011. http://www.reuters.com/article/2010/10/03/idUS44374+03-Oct-2010+BW20101003 .
"The Coca-Cola Company Provides Roadmap for Achieving 2020 Vision at Analyst and Investor Event." Coca-Cola: The Coca-Cola Company. 16 Nov. 2009. Web. 04 May 2011. http://www.thecoca-colacompany.com/presscenter/nr_20091116_2020_vision.html
Executive Summary 3
Introduction to the Beverage Industry
Introduction 4
Product Trends 6
Demand and Economic Trends 6
Business Model Trends in the Beverage Industry 8
Industry M&A Analysis
Strategic Objectives of Coca-Cola’s M&A Activity 11
Coca-Cola M&A Portfolio Analysis 15
PepsiCo M&A Portfolio Analysis (Largest Competitor) 18
Other Beverage Industry M&A Analysis 22
Analysis of the Coca-Cola/CCE M&A Deal
Coca-Cola’s Acquisition of CCE’s North American Operations 23
Major Legal and Financial Players in the M&A Deal 26
Regulatory and Shareholder Approval of the Transaction 27
Implementation Analysis: Likelihood of Acquisition Success 28
Conclusion 29
References 30
More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):
Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List
References
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