Investments, Legislation, Lithuania, Markets and Companies, Mergers and take-overs

Gabriele Sereniene, spokeswoman for Coca-Cola HBC Lietuva, told BNS that the binding agreement had been signed on Dec. 21 and that the value of the deal would not be disclosed.

Coca-Cola hopes to close the acquisition of the Varena-based company by the end of the first quarter of 2016.

“This investment also proves our long-term commitment to operate in Lithuania’s market for ready-to-consume soft drinks. We hope that our cooperation with Neptunas’ team, coupled with our large sales and distribution capacities and extensive market knowledge will help us expand and strengthen this brand successfully,” Valdas Pakstys, Baltics’ business development manager at Coca-Coca HBC, said in a press release.

According to Gintas Petrus, board chairman of Neptuno Vandenys, Coca-Cola would become a strategic investor.

Coca-Cola is now working out the final terms and conditions of the deal and will soon apply for the required approvals.

In 2014, the sales of Neptuno Vandenys rose by 25.7% to 5.3 million euros, from 4.24 million euros in 2013. Its net profit soared by an annual 32.8% to 1.907 million euros. This year, the company expects its sales to grow by 15 to 20%.

The revenues of Coca-Cola HBC Lietuva last year grew by 2.6% to 50.87 million euros, from 49.572 million euros in 2013, and its net profit rose by 23.6% to 1.143 million euros. Coca-Cola HBC Lietuva is fully-owned by Estonia’s Coca-Cola HBC Eesti.