M&A

M&A

PepsiCo bottler Varun Beverages acquires South Africa Co for Rs.1,320-Cr

Business Line  

Publicly-listed Pepsi bottler Varun Beverages Ltd (VBL) has acquired 100% stake in South Africa-based the Beverage Company (BevCo) along with its wholly-owned subsidiaries, at an enterprise value of INR 1,320 crore (about ZAR 3 Billion). There is an option for Varun to accept minority co-investment from a large equity fund. Bevco manufactures and distributes beverages licensed by PepsiCo Inc. It has franchise rights from PepsiCo Inc in South Africa, Lesotho and Eswatini. It also has distribution rights for Namibia and Botswana. BevCo has five manufacturing facilities across Johannesburg, Durban, East London and Cape town in the region. The company also sells its own branded non-alcoholic beverages in South Africa. BevCo's net revenue for FY23 was about INR 1,590 crore (ZAR 3,615 million).