SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)
OCTOBER 19, 1999
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COCA-COLA BOTTLING CO. CONSOLIDATED
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(Exact name of registrant as specified in its charter)
Delaware 0-9286 56-0950585
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(State or other jurisdiction (Commission File Number) (IRS Employer Identification No.)
of incorporation)
4100 Coca-Cola Plaza, Charlotte, North Carolina 28211
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(Address of principal executive offices Zip Code)
(704) 551-4400
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Registrant's telephone number, including area code
Item 5. Other Events
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On October 19, 1999, the Company issued the following press release:
NEWS RELEASE
[COCA-COLA GRAPHIC APPEARS HERE] Media Contact: Lauren C. Steele
FOR IMMEDIATE RELEASE VP Corporate Affairs
October 19, 1999 704-551-4551
Investor Contact: David V. Singer
VP, Chief Financial Officer
704-551-4604
COCA-COLA CONSOLIDATED TO ACQUIRE 100 PERCENT CONTROL OF
SIGNIFICANT CAROLINAS BOTTLING TERRITORIES FOR $320 MILLION
o TRANSACTION VALUED AT $320 MILLION o SALES JUMP TO $1.3 BILLION
o SOLIDIFIES POSITION IN SOUTHEAST, MID ATLANTIC o SHARE OF U.S. COKE SALES ABOVE 8 PERCENT
CHARLOTTE, NC---Coca-Cola Bottling Consolidated today said it is set to acquire
100 percent interest in major selling territories in the Carolinas in a $320
million transaction, further solidifying the bottler's position in the Southeast
and Mid-Atlantic region.
Chairman and CEO J. Frank Harrison III said Coca-Cola Consolidated is in
negotiations to acquire The Coca-Cola Company's 50 percent interest in Piedmont
Coca-Cola Bottling Partnership. Coca-Cola Consolidated anticipates the
transaction will include the issuance by Coca-Cola Consolidated of $118 million
of preferred stock with a dividend yield of 4.3 percent. Separately, Coca-Cola
Consolidated will repay $202 million in outstanding debt and lease obligations
of the partnership, bringing the total value of the transaction to $320 million.
Since 1993, the Charlotte-based bottler has been a joint venture partner with
The Coca-Cola Company in the Piedmont Coca-Cola Bottling Partnership, a company
with franchise territories in much of South Carolina and parts of Eastern North
Carolina. Coca-Cola Consolidated has served those territories under a management
agreement since the formation of the joint venture. This transaction will add
significant selling territories in the Carolinas to Coca-Cola Consolidated,
representing annual sales of approximately $280 million, further solidifying
Coca-Cola Consolidated's position in the Southeast and Mid-Atlantic region.
Harrison explained that it is important for Coca-Cola Consolidated to continue
to grow in order to meet the challenges of the competitive soft drink business.
"The soft drink industry continues to consolidate. Further, our retail customers
and suppliers are also consolidating, making it more and more important for us
to continue to grow," he said. "There is definite strength in size. As we grow
larger, we are not only able to take advantages of efficiencies in production,
distribution and materials procurement, but we are better able to forge
marketing partnerships with larger retail customers."
MORE
COCA-COLA CONSOLIDATED TO ACQUIRE CAROLINAS TERRITORIES
FROM COCA-COLA CO. IN $300 MILLION TRANSACTION
PAGE 2
Coca-Cola Consolidated has grown significantly, both internally, and through
acquisitions in recent years. Over the last decade, Coca-Cola Consolidated's
internal growth and acquisition program has more than tripled the size of the
company from less than 80 million equivalent cases to more than 250 million.
Over the past few years, Coca-Cola Consolidated has led the nation in comparable
territory volume growth, and has made several contiguous acquisitions.
"Due to the structure of the Piedmont Coca-Cola Bottling Partnership we have
been generating most of the operational efficiencies available through territory
consolidation since mid-1993. However, acquiring 100 percent ownership of this
territory is a major step forward for Coca-Cola Consolidated." Harrison said.
Already the nation's second largest Coca-Cola bottler, the Piedmont Coca-Cola
Bottling Partnership acquisition will boost the bottler's share to 8.2 percent
of all Coca-Cola products sold in the US while increasing total sales to more
than $1.3 billion.
The selling territories acquired in the transaction represents most of South
Carolina, including Greenville, Columbia, Charleston and Myrtle Beach and parts
of Eastern North Carolina, including Fayetteville, Wilmington, Goldsboro and New
Bern.
This transaction is subject to regulatory approval and the approval of the Board
of Directors of Coca-Cola Consolidated and The Coca-Cola Company and final
negotiations of all terms and documentation.
--ENJOY COCA-COLA--
COCA-COLA BOTTLING CO. CONSOLIDATED, 4100 COCA-COLA PLAZA, CHARLOTTE, NC 28211
(704) 551-4400
Signatures
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized:
COCA-COLA BOTTLING CO. CONSOLIDATED
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(REGISTRANT)
Date: October 22, 1999 BY: /s/ David V. Singer
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David V. Singer
Principal Financial Officer of the Registrant
and
Vice President, Chief Financial Officer