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Coca-Cola Bottling Company UNITED signs LoI to buy three Alabama production plants

DBR Staff Writer Published 16 June 2016

Coca-Cola Bottling Company UNITED has signed a letter of intent (LoI) to acquire production facilities in Leroy, Robertson and Mobile, Alabama from Coca-Cola Consolidated.

Coca Cola

It will also exchange its territories in Spartanburg and Bluffton, South Carolina for territories in Florence, Alabama and Panama City, Florida.

UNITED will also buy the distribution plants situated in Leroy, Mobile, and Robertsdale, Alabama; Bainbridge, Columbus, and Sylvester, Georgia; and Laurel and Ocean Springs, Mississippi.

The company will also acquire the manufacturing facility in Mobile, Alabama.

Coca-Cola North America president Alexander Sandy Douglas said: "These agreements involving Consolidated and UNITED are another important step in our ongoing refranchising initiative.

"Consolidated's agreement involving Memphis adds a major market to their portfolio. Consolidated and UNITED have also agreed to create more geographically contiguous operations for both companies in the Southeast, which will improve the overall ability of the Coca-Cola system to serve customers and consumers."

Earlier this year, the Coca-Cola Company and Consolidated also closed an earlier agreement to refranchise territory centered on Baltimore. The deal included manufacturing plants in Baltimore and Silver Spring, Md.

The deals are part of a plan to refranchise all of the Coca-Cola Company's North American territories by the end of next year.

UNITED has to date transitioned 17 Coca-Cola facilities and territories, including more than 2500 associates serving nearly 38,500 customers in the Southeast.

Image: The Coca-Cola Company to refranchise territory to Coca-Cola Bottling Co. Consolidated. Photo: courtesy of THE COCA COLA COMPANY.