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Acquisitions and Divestitures
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6 Months Ended |
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Jun. 29, 2012
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| Acquisitions and divestitures | |
| Acquisitions and Divestitures |
Acquisitions and Divestitures
Acquisitions
During the six months ended June 29, 2012, our Company's acquisition and investment activities totaled $756 million, which primarily included investments in the existing beverage business of Aujan Industries ("Aujan"), one of the largest independent beverage companies in the Middle East, and our acquisition of bottling operations in Guatemala, Vietnam and Cambodia.
During the six months ended June 29, 2012, the Company transferred $531 million under its definitive agreement with Aujan in exchange for 50 percent of the Aujan entity that holds the rights to Aujan-owned brands in certain territories and 49 percent of Aujan's bottling and distribution operations in certain territories. The remainder of the investments contemplated under the definitive agreement are contingent upon obtaining certain regulatory and other approvals, which we expect to obtain prior to the end of 2012. The Company expects to complete the transaction for $980 million in total value, which includes approximately $830 million to $850 million in cash paid by the Company. The remainder of the value will be comprised of the Company's proportionate share of underlying debt in the acquired entities. The Company's investments in Aujan are being accounted for under the equity method of accounting.
During the six months ended July 1, 2011, our Company's acquisition and investment activities totaled $260 million, which included 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.
Divestitures
During the six months ended June 29, 2012, proceeds from disposals of bottling companies and other investments totaled $957 million. These proceeds resulted from the sale and/or maturity of investments associated with the Company's cash and risk management programs and were not related to the disposal of bottling companies. Refer to Note 3 for additional information.
During the six months ended July 1, 2011, proceeds from disposals 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.
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