Bhartia family, promoters of the Jubilant Bhartia Group, is likely to acquire a 40% share in Hindustan Coca-Cola Beverages (HCCB), Coca-Cola India's wholly owned bottling arm, for Rs 12,500 crore. If completed, this will be the family's largest acquisition to date. The formal announcement of the purchase is due later today, according to the news outlet.
The transaction will be funded using a combination of equity and debt. The Bhartia family, led by Shyam and Hari Bhartia of the Jubilant Group, would provide Rs 5,000 crore, with the remaining financed by Goldman Sachs, which has agreed to fund the special purchase vehicle (SPV) formed for the deal.
The acquisition strengthens the Bhartia family's position as a major stakeholder in India's beverage industry. The company recorded a 9.2% growth in revenue to Rs 14,021 crore in fiscal year 2023-24 and a 247% increase in net profit to Rs 2,808.3 crore, according to a filing with the Registrar of Companies last month.
To avoid overleveraging their conglomerate, the Bhartias formed financing arrangements with Goldman Sachs. Goldman Sachs will later syndicate the investment with domestic mutual funds and overseas institutions. Previously, the family looked into alternate financing options with Bain Credit, Apollo Global Management, and others.
