Introduction
The Coca Cola Company is one of the world’s largest corporations. The globalized nature of the company therefore calls for the immediate grasping of any opportunities and resources that emerge in the world market.
The Coca Cola Company and its brands of bottlers have thus been engaging in several joint acquisitions and mergers in new markets that are emerging. Such acquisitions have contributed significantly and enhanced the overall expansion strategy of the company.
An example of an acquisition that the Coca Cola Company has undertaken is the acquisition of a mineral water processing plant in Switzerland. This water bottler was known as Valser Mineralquellen. Hess Group AG privately owned this company. This particular acquisition took place in September 2002 (Schirf and Lagos 34).
This particular acquisition actually comprised of a several water brands that were already well established. These include Valser Limelite, Valser Naturelle, and Valser Classic. There was also an acquisition of the bottler’s production, storage, and distribution facilities.
The acquisition’s total consideration amounted to about 117. Million Euros. The Coca Cola Company’s share in this was about 58.7 million. In addition, the costs of transactions added about 0.5 million Euros to the total cost of acquisition. After the acquisition, the merged company was able to increase its European profits by about 4%.This translates to about 423 million in revenue generated (Schirf and Lagos 35). This was because of the already established market of the acquired company. This was supplemented by customer’s good attitude towards the acquisition seeing that Coca Cola is a well-recognized and respected global brand. These are just some of the synergies realized by the acquisition.
In my opinion, the acquisition was very successful. This is because all the Coca Cola Company’s objectives in engaging in the acquisition were met. The acquisition had an overall positive effect on the global brand of the Coca Cola Company and it led to an increase in the total revenues of the company.
Works cited
Schirf, Lisa, Lagos, Theresa. Analysis of the Coca-Cola Company. New Jersey, NY: Valanium Associates.2012.
