Kofola ČeskoSlovensko has announced that it has acquired two Czech mineral water brands, Karlovarská Korunní and Ondrášovka.
The company has acquired 100% shareholding in the two brands, thereby consolidating its position in the local market, it said.
Kofola has met all conditions for the takeover, which has been approved by the Úřad pro ochranu hospodářské soutěže (office for the protection of competition) in the Czech Republic.
The framework agreement was signed in December 2019 and both parties agreed not to reveal the value of the transaction.
The Deal
The deal will see Kofola taking over the distribution network, liabilities, receivables and all employees of both companies as well as the brand Šaratica, which offers natural mineral water from healing springs.
The acquisition of Korunní and Ondrášovka will enable Kofola ČeskoSlovensko to achieve further growth in the HoReCa segment and Šaratica will open up opportunities for distribution in pharmacies.
Daniel Buryš, general director at Kofola ČeskoSlovensko, added, "Kofola is focusing on the consolidation of its position on the local non-alcoholic beverage market. The acquisition of Korunní and Ondrášovka was logically our main long-term objective."
Major Reorganisation
Following the acquisition, and in line with the current market situation amid the COVID-19 outbreak, Kofola Group will undergo a major reorganisation, the company added.
Jannis Samaras, CEO of the Kofola Group commented, "I am fully convinced that the Kofola Group is well prepared for such a big acquisition, as well as for the consequences of COVID-19 epidemic safety measures.
“In the coming months, as the coronavirus pandemic continues, Daniel Buryš will focus fully on stabilising and developing business in Slovakia and the Czech Republic. ”
Last year, Karlovarská Korunní and Ondrášovka generated annual sales of CZK 850 million (€31.2 million) and EBITDA of around CZK 100 million (€3.6 million).
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.
