Coca-Cola HBC AG (LON:CCH) has acquired Bambi, a Serbian confectionary business, from private equity firm Mid Europa Partners in a €260mln (£228mln) deal.
The FTSE 100 soft drinks bottler said the purchase offered the opportunity for revenue synergies through cross-promotion, “complementary innovation”, and cost efficiencies while also providing access to a “strong distribution network” and product portfolio in Serbia and the Western Balkans, one of its fastest growing territories.
READ: Coca-Cola HBC shares drop on outlook in spite of above-target full-year profits
Established in 1967, Bambi manufacturers product ranges including biscuits, wafers and savoury snacks with its leading biscuit brand, Plazma, ranking first in brand recognition in Serbia.
The company generated revenues of around €80mln (£70mln), HBC said, adding that the firm enjoyed “strong profitability” with an EBIT margin “nearly three times higher” than its own.
Zoran Bogdanovic, chief executive of HBC, said the acquisition would allow the company to increase its presence in “key consumption occasions” such as breakfast and home snacking as well as adding “iconic, complementary consumer brands” and “innovation capabilities” to its portfolio.
The purchase, scheduled to complete in the second quarter of 2019, may bring some cheer to investors after the firm forecast a slow down in a number of its markets for the current fiscal year, which in turn was likely to dent consumer spending.
In early morning trading Monday, HBC shares were down 1% at 2,535p.
--Adds share price--