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Acquisitions and Divestitures
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3 Months Ended |
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Mar. 30, 2012
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| Acquisitions and divestitures | |
| Acquisitions and Divestitures |
Acquisitions and Divestitures
Acquisitions
During the three months ended March 30, 2012, our Company's acquisition and investment activities totaled $121 million, which includes our acquisition of bottling operations in Vietnam and Cambodia from Coca-Cola Sabco (Pty) Limited
("Sabco"). None of the Company's acquisitions and divestitures was individually significant.
During the three months ended April 1, 2011, our Company's acquisition and investment activities totaled $189 million, which primarily related to our acquisition of the remaining ownership interest of Honest Tea, Inc. ("Honest Tea") not already owned by the Company. Prior to this transaction, the Company accounted for our investment in Honest Tea under the equity method of accounting. We remeasured our equity interest in Honest Tea to fair value upon the close of the transaction. The resulting gain on the remeasurement was not significant to our condensed consolidated financial statements. In addition, the Company's acquisition and investment activities included an immaterial cash payment for the finalization of working capital adjustments related to our acquisition of Coca-Cola Enterprises Inc.'s ("CCE") former North America business.
Definitive Agreement to Acquire an Investment in Aujan Industries
On December 14, 2011, the Company entered into a definitive agreement with Aujan Industries ("Aujan"), one of the largest independent beverage companies in the Middle East, to acquire approximately half of the equity in Aujan's existing beverage business, excluding Aujan's Iranian manufacturing and distribution business. Under the terms of the agreement, we will acquire 50 percent of the Aujan entity that holds the rights to Aujan-owned brands and 49 percent of Aujan's bottling and distribution company, which will continue to hold the licensed brand Vimto. Closing of the transaction is subject to certain conditions and is expected to occur in the second quarter of 2012. Total consideration for this investment will be approximately $980 million, which we expect to fund from our existing cash reserves. The Company will account for our investment in Aujan under the equity method of accounting.
Divestitures
During the three months ended March 30, 2012, proceeds from disposals of bottling companies and other investments totaled $49 million, none of which was individually significant.
During the three months ended April 1, 2011, proceeds from the disposal of bottling companies and other investments totaled $395 million, primarily related to the sale of our investment in Coca-Cola Embonor, S.A. ("Embonor"), a bottling partner with operations primarily in Chile, for $394 million. Prior to this transaction, the Company accounted for our investment in Embonor under the equity method of accounting. Refer to Note 10. None of the Company's other divestitures was individually significant.
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