Coca-Cola to Acquire Bottlers in Southern France

Coca-Cola Enterprises (Atlanta) has signed a letter of intent to acquire the bottling operations of Sud Boissons S.A. and Societe Boissons Gazeuses de la Cote d'Azur (Southern French Bottlers) for a transaction value of approximately $100 million. Sud Boisson operates in the geographic area around Toulouse, while Societe Boissons Gazeuses de la Cote d'Azur covers the territories around Nice and Cannes. The Southern French Bottlers had combined 1998 net operating revenues of approximately $70 million with approximately 18 million unit cases.

"This acquisition demonstrates our commitment to appropriate expansion in Western Europe," commented Henry Schimberg, president and CEO of Coca-Cola Enterprises. "We are pleased that Coca-Cola Enterprises will now have the bottling rights for continental France allowing us to better meet the needs of our customers and the marketplace."

The company expects that the transaction will be funded entirely with the issuance of debt. The transaction is expected to close in the second quarter of 1999 and is subject to negotiation of a definitive purchase agreement and all required regulatory, governmental, and board of directors' approval.