South Africa: Varun Beverages completes acquisition of BevCo

Varun Beverages (VBL), the Indian bottler for PepsiCo, has completed the acquisition of BevCo, a South African beverage company, following approval from the South African Competition Commission.

The proposed acquisition was announced in December 2023, valuing BevCo at 1,320 crore INR ($16.4 million).

BevCo is described as a leading independent manufacturer and distributor of licensed PepsiCo and own-brand non-alcoholic drinks. It is known for holding PepsiCo franchise rights in South Africa, Lesotho, and Eswatini, as well as distribution operations in Namibia and Botswana. Its brand portfolio includes Refreshhh, Reboost, Coo-ee, and JIVE, while its manufacturing network comprises five manufacturing facilities with a combined installed capacity of 3,600 bottles per minute.

VBL has provided a corporate guarantee of 1,500 million ZAR ($21 million) to secure BevCo’s credit facilities from FirstRand Bank. The company stated that this guarantee has no effect on its operations.

“The acquisition will enable VBL to expand its geographical footprint in Africa” the company said in a regulatory disclosure earlier.

Source: Economic Times / Varun Beverages