In July, the Central Bottling Company (Coca Cola Israel) is expected to conclude its due diligence for the acquisition of Tara Agricultural Producers Cooperative Society (Tara Dairies). The original price for the deal was $39 million, but was finally set at $35 million, following a new valuation by Coca Cola Israel, according to due diligence by the Deloitte-Brightman-Almagor accounting firm, in cooperation with the Central Bottling Company.
Tara said in response, “Due diligence has almost been completed. Negotiations are continuing, and the final contract will be submitted for approval to the Tara shareholders meeting, and to Coca Cola Israel’s shareholders. There are no large differences concerning the sale price.”
Coca Cola Israel said in response, “Due diligence is scheduled to be completed in the next few days, and we hope that the acquisition process, including the signing of the final contract and the approval of shareholders on both sides, will be completed in July.”
The final negotiations for the deal are proceeding smoothly. Both sides agree that the gaps between the valuations are not significant, and see no reason why the deal should not go through. When the acquisition is agreed, Coca Cola Israel and Tara will begin formulating a work plan. In addition, the sale of the dairy in Tel Aviv and the construction of a new dairy will be considered. It is too early to determine which systems of Tara will be merged into the Coca Cola Israel headquarters.
”We hope to be able to conclude the process in July, and to work together with Tara’s people to move the company forward,” Coca Cola Israel said.
Published by Globes [online] - www.globes.co.il - on June 24, 2004