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Coca-Cola acquires CCE North America business

New business Coca-Cola Refreshments USA will consolidate five business components.

The Coca-Cola Company has closed the acquisition of the Coca-Cola Enterprises (CCE) North America business for a total value of approximately $12.3bn, and also sold the company's Norway and Sweden bottling operations to CCE for $822m.

With this deal now being complete, The Coca-Cola Company has given the sales and operational elements of the North American businesses new names, Coca-Cola Refreshments USA (CCR) and Coca-Cola Refreshments Canada Company.

The two new business entities will be wholly-owned subsidiaries of The Coca-Cola Company and led by CCR president and CEO Steve Cahillane.

CCR will consolidate five business components, which previously were CCE North America; CCNA Foodservice; the Minute Maid and Odwalla juice businesses; CCNA Supply Chain Operations; and the Company-owned bottling operations in Philadelphia, into the bottling and customer service operation in both the US and Canada.

The newly restructured Coca-Cola North America (CCNA), under the leadership of president Sandy Douglas, will provide franchise leadership and consumer marketing and innovation.

The Coca-Cola Company chairman and CEO Muhtar Kent said that with the completion of this transaction, they have redefined their operating model to best serve the unique needs of their flagship market, in full alignment with their 2020 Vision.

"Through CCE's acquisition of our bottling operations in Norway and Sweden, this transaction also further strengthens our franchise system in Europe by providing broader geographic coverage and optimized marketing and distribution leadership in this key geography," Kent said.

The global soft drinks company expects to generate operational synergies of at least $350m per year after the integration is complete.

In February, The Coca-Cola Company entered into a definitive agreement to acquire the assets and liabilities of CCE's entire North American business for a total value of approximately $12.3bn.

The acquisition of CCE's North American business includes consideration of The Coca-Cola Company's 34% equity ownership in CCE, valued at $3.4bn at the date of the announcement, and the assumption of $8.88bn in debt.

Simultaneously, CCE acquired the company's bottling operations in Norway and Sweden for $822m.

The Coca-Cola Company produces around 500 sparkling and still brands. In addition to Coca-Cola, the company's portfolio includes 12 brands such as Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply and Georgia.