CHARLOTTE, N.C. -- Coca-Cola Bottling Co. Consolidated, the nation’s largest independent Coca-Cola bottler, today announced it has signed a definitive agreement with the Coca-Cola Co. to exchange the bottler’s franchise territory in Jackson, Tenn., for territory currently served by Coca-Cola Refreshments USA Inc., a wholly owned subsidiary of the Coca-Cola Co., in Lexington, Ky.
This agreement represents an additional phase of the proposed franchise territory expansion and realignment described in the previously announced letter of intent between the company and the Coca-Cola Co. The company expects the exchange transaction to close in the first half of 2015.
Coca-Cola Bottling is continuing to work toward definitive agreements with the Coca-Cola Co. for the remainder of the proposed franchise territory expansion and realignment, including territories currently served by CCR in Cleveland; Cookeville, Tenn.; Louisville, Paducah and Pikeville, Ky.; and Evansville, Ind.
“We are excited about signing a definitive agreement for another phase of our previously announced transaction with the Coca-Cola Co," said Coca-Cola Consolidated chairman and CEO J. Frank Harrison III. "We look forward to serving the Lexington community--including our customers, consumers and new employees there.”
The definitive agreement and other agreements to be entered into at closing will provide for the company to receive CCR’s existing rights in the Lexington, Ky., territory to distribute brands owned by the Coca-Cola Co., as well as certain other brands not owned by Coca-Cola that are currently being distributed in the Lexington, Ky., territory by CCR.
Such agreements will also provide for Coca-Cola Bottling to transfer to CCR all of the company’s existing rights in the Jackson, Tenn., territory and the exchange, by the Coca-Cola Bottling and CCR, of certain distribution assets and working capital items in the company’s Jackson, Tenn., territory for comparable items in CCR’s Lexington, Ky., territory.
Closing of the transaction is subject to the parties satisfying certain conditions.
Based in Charlotte, N.C., Coca-Cola Consolidated is the nation’s largest independent Coca-Cola bottler with franchise territories in 11 states.
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