Varun Beverages Ltd to acquire The Beverage Company for Rs 1,320 cr

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Varun Beverages Limited will acquire South Africa-based The Beverage Company and its wholly-owned subsidiaries (Bevco) in a deal at an enterprise value of Rs 1,320 crore, the company said on Tuesday in a BSE filing.


The press release stated that Bevco is engaged in the business of manufacturing and distributing licenced (PepsiCo Inc.) / own-branded non-alcoholic beverages in South Africa. It has franchise rights from PepsiCo Inc. in South Africa, Lesotho, and Eswatini. It also has distribution rights for Namibia, and Botswana.


The press release said that the acquisition will enable Varun Beverages, which manufactures and distributes non-alcoholic beverages, to expand its geographical footprint in Africa. It further stated that the indicative period for the completion of the acquisition is on or before July 31, 2024.


The company said that, with an option to accept minority co-investment from large equity funds, it intends to hold 100 per cent of the equity share capital of Bevco and its subsidiaries.


The wholly-owned subsidiaries under Bevco include an operating company named Little Green Beverages Proprietary Limited and various in-operative dormant companies such as The Beverage Company BIDCO Proprietary Limited, Old Little Green Beverages Proprietary Limited, Little Green Beverages Bloemfontein Proprietary Limited, among others.


Earlier this month, Varun Beverages was termed the best performer over the past year in the fast-moving consumer goods (FMCG) space, delivering a return of 60 per cent. The revenue growth of the company was led by volume growth of 15.4 per cent year-on-year (Y-o-Y) at 220 million cases and improved realisations, which edged up by 5 per cent to Rs 176 a case.


The company also plans to set up three greenfield plants in Uttar Pradesh, Maharashtra and Odisha in CY24 and hopes to start operations in these units to cater to the peak summer season of 2024. 

First Published: Dec 19 2023 | 5:38 PM IST