The proposed integration of the two Coca-Cola bottlers will create a soft drinks leader in Algeria, serving over 87,000 points of sale. The combined group will leverage and build on existing best practices to improve service to customers and consumers.
ECCBC will be the majority owner of the unified Algerian Coca-Cola Bottler
Equatorial Coca-Cola Bottling Company (ECCBC) and Castel Group announce they have reached an agreement to initiate a process of integration of their Algerian soft drinks businesses. The proposed integration will create a unified market leader, being ECCBC the majority owner, which will serve over 87,000 points of sale; The transaction is subject to certain conditions precedent including the approval of the relevant authorities.
The proposed integration will allow both companies to combine their respective capabilities and expertise to drive performance across a consolidated beverage platform to serve the Algerian market more effectively and efficiently, driving value for the Coca-Cola System’s key stakeholders including consumers, customers and suppliers.
ECCBC is the official Coca-Cola bottler / distributor in 13 countries in North and West Africa with a proud history dating back over 30 years. ECCBC is committed to continuing to invest, employ, produce, and distribute locally, maintaining strong commitments to the economic and social well-being of each community it serves.
With over 60 years of experience in Africa, Castel Group has developed an industrial footprint in 21 African countries. As a family-owned company, Castel Group considers its strong social values and close relationships with its partners and employees to be the cornerstone of its long-term success.
Alfonso Bosch, CEO of ECCBC Group, said: “Through this integration, Equatorial Coca-Cola Bottling Company, reaffirms its commitment to Algeria and the African continent as a whole. Throughout the integration process we look forward to combining our respective businesses for the benefit of all our stakeholders.”
Gil Martignac, from Castel Group, added: “This integration is part of the entrepreneurial path that Castel has been following in Algeria and Africa for several decades, and of its unwavering local commitment. It is a strong sign of Castel’s dynamic growth within the Algerian economy and its desire to contribute to its vitality.”
Rothschild & Co acted as sole financial advisor to ECCBC and Latham & Watkins LLP acted as lead legal advisor.
Alantra acted as sole financial advisor to Castel Group and Lacourte Raquin Tatar acted as lead legal advisor.
About Castel Group
Castel Group was founded by Pierre Castel in 1949, with a presence in Africa since 1966. Guided by its entrepreneurial spirit, it has developed its presence on the continent over the years to become a leader in the African beverage market. Always ready to go further, Castel also invests in businesses such as glassmaking, and promotes the strengthening of the agricultural sector (sugar, flour, corn, etc.). Eager to encourage the emergence of promising entrepreneurs, since September 2017 Castel has been supporting initiatives led by young Africans in the fields of agriculture and agribusiness, essential to the development of the African economy, with the Pierre Castel Fund – Acting with Africa.