Varun Beverages Limited signed a Share Purchase Agreement to acquire SBC Tanzania Limited from Tanzania Bottling Company SA in a transaction valued at approximately $150 million.
Varun Beverages Limited (NSEI:VBL) signed a Share Purchase Agreement to acquire SBC Tanzania Limited from Tanzania Bottling Company SA in a transaction valued at approximately $150 million on November 12, 2024. As part of the transaction, Varun Beverages will acquire 100% stake in SBC Tanzania Limited. The acquisition will enable Varun Beverages to expand its geographical footprint in Africa. In a separate agreements, Varun Beverages Limited signed a Share Purchase Agreement to acquire SBC Beverages Ghana Limited from Ghana Bottling Company Limited in a transaction valued at $15.1 million and to acquire the remaining 39.93% of the issued and paid-up Equity Share Capital of Lunarmech Technologies Private Limited for INR 2 billion. For the period ending March 31, 2024, SBC Tanzania Limited reported total revenue of approximately $180 million.
The transaction is subject to approval from PepsiCo Inc., Fair Competition Commission and Tax clearance from Tanzania Revenue Authority. The deal has been approved by the board of directors of Varun Beverages. The transaction is expected to close on or before March 31, 2025.
Varun Beverages Limited is an India-based company, which is a franchisee of PepsiCo. It produces and distributes a range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. PepsiCo CSD brands produced and sold by it include Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda Orange, Seven-Up Nimbooz Masala Soda and Evervess. PepsiCo NCB brands produced and sold by it include Tropicana Slice, Tropicana Juices (100% and Delight), Seven-Up Nimbooz, Gatorade as well as packaged drinking water under the brand Aquafina. It has approximately 34 manufacturing plants in India and over six manufacturing plants in international geographies (two in Nepal and one each in Sri Lanka, Morocco, Zambia and Zimbabwe). Its subsidiaries include Varun Beverages (Nepal) Private Limited, Varun Beverages Lanka (Private) Limited, The Beverage Company Proprietary Limited, and others.
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Varun Beverages Limited signed a Share Purchase Agreement to acquire SBC Tanzania Limited from Tanzania Bottling Company SA in a transaction valued at approximately $150 million.
