15 December 2011
Clifford Chance advises Aujan Industries on the signing of a $980 million transaction with The Coca-Cola Company
Clifford Chance, in conjunction with Al-Jadaan & Partners Law Firm, has advised Aujan Industries, the largest independent beverage company in the Middle East, on the sale of approximately half of the equity in its beverage business to The Coca-Cola Company. This transaction has a value of $980 million.
Under the terms of the agreement, The Coca-Cola Company will acquire 50 per cent of the Aujan entity that holds the rights to Aujan-owned brands, and 49 per cent of Aujan’s bottling and distribution business. The licensed brand "Vimto" will remain with the Aujan-managed bottling and distribution business.
This transaction represents the largest-ever investment by a multinational firm in the Middle East’s fast moving consumer goods sector. Aujan, which holds a top-three position in non-carbonated beverages in every country in which it operates, is one of the leading companies in Saudi Arabia, with total annual revenues exceeding US$850 million.
The Clifford Chance team was led by Nigel Wellings, Dubai based Corporate Partner. He was supported by Daud Khan and Lyndsey McAuley, Dubai based Associates, together with the Firm's Consumer Goods specialists from around the network. The Al-Jadaan & Partners team was led by Partner Khalid Al-Abdulkareem and Omar Rashid, Head and Joint-Head respectively of the Corporate & Equity Capital Markets practice, together with support from Associates Fahad Abuhimed, Osama Audi and Majid Al-Sheikh.
Nigel Wellings, Clifford Chance Partner, comments: "We are delighted to have been part of such a key transaction for Aujan and the region as a whole. Clifford Chance has a strong focus on the consumer goods and retail sector, so we are pleased to have the opportunity to showcase our expertise in the Middle East."
Sheikh Adel Aujan, Chairman of Aujan Industries, comments: “Today's announcement marks the fruition of extensive dialogue between Aujan and The Coca-Cola Company which has resulted in a soundly based framework for the commercial development of the business. Now supported by our shared heritage of more than 200 years, we are beginning an exciting new chapter in Aujan’s history.”