NEW YORK (TheStreet) -- Shares of The Coca-Cola Co. (KO) are rising, up 0.74% to $43.85 in early market trading Wednesday, after the beverage giant announced that it signed a definitive agreement with Great Lakes Coca-Cola Distribution, L.L.C., a wholly-owned subsidiary of Reyes Holdings.
Reyes is granting territories in the greater Chicago area, as Great Lakes Coca-Cola Distribution will dedicate all its sales and distribution activities on servicing the Coca-Cola brands.
Coca-Cola did not disclose terms of the deal, but expects to close the transaction in 2015.
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Reyes Holdings is one of the largest global providers of food and beverage distribution services, and delivers over 800 million cases of well-known beer and food products annually.
Atlanta, GA-based Coca Cola is a beverage company that owns or licenses and markets more than 500 nonalcoholic beverage brands, including Coca-Cola, Diet Coke, Fanta and Sprite.
Separately, TheStreet Ratings team rates COCA-COLA CO as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate COCA-COLA CO (KO) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins, reasonable valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."