FDBusiness.com

Refresco Acquires Cott’s Bottling Activities For €1.1 Billion

 Breaking News
  • Cargill Outlines Plan to End Cocoa Deforestation Cargill has outlined its plan to eliminate deforestation from its cocoa supply chain. The Protect Our Planet plan provides concrete actions the company is taking to achieve 100 percent cocoa bean traceability and includes a commitment of “no further conversion” of any forest land in Ghana and Ivory Coast for cocoa production. It also expands the company’s [...]...
  • Industrial Pack Launches at Packaging Innovations 2019 Industrial Pack, the UK’s only dedicated show for industrial, transit and protective packaging, is set to make its debut alongside Packaging Innovations, Empack and Label&Print at Birmingham’s NEC on 27 & 28 February 2019. The protective and transit packaging industry is forecast to be worth £3.7 billion in the UK next year, cementing itself as [...]...
  • A Choice of Sizes All-round The growing popularity and diversity of sauces, dressings and toppings in the food sector has led RPC Kutenholz to expand its popular Allrounder range. A new 1 litre version is now being added to the existing 500ml and 875ml sizes, giving manufacturers, foodservice suppliers and retailers an even wider choice of an attractive and practical [...]...
  • Irish Retailers Relish Run Up to Christmas as Dunnes Takes Top Spot Dunnes Stores has claimed pole position as Ireland’s leading retailer for the third consecutive period, boasting a market share of 22.4% in the 12 weeks to 2 December 2018.  The latest grocery market figures from Kantar Worldpanel show the retailer registered sales growth of 3.4% on last year. Dunnes held on to top spot despite stiff competition from [...]...
  • Almond Board of California Fueling Innovation with $6.8 Million Research Investment The Almond Board of California (ABC) has announced a $6.8 million investment in 75 independent research projects exploring next-generation farming practices including optimal use of everything almond orchards grow. In addition to improving production practices, the research projects help the California almond community provide almond lovers around the world with a safe, wholesome and sustainable [...]...

Refresco Acquires Cott’s Bottling Activities For €1.1 Billion

Refresco Acquires Cott’s Bottling Activities For €1.1 Billion
July 26
11:03 2017

Refresco, the Netherlands-based independent bottler of beverages for retailers and A-brands in Europe and the US, has acquired the bottling activities of Cott Corporation, the Canadian drinks group, for US$1.25 billion (€1.1 billion). The deal will create the world’s largest independent bottler with leadership positions across Europe and North America. The acquisition adds 19 production sites in the US, four in Canada, one in Mexico and five in the UK to Refresco’s business.

Refresco currently operates production sites in Benelux, Finland, France, Germany, Italy, Poland, Spain, the UK and the US. The company generated full year volumes and revenues of circa 6.5 billion litres and circa €2.1 billion, respectively, in 2016.

Cott’s bottling activities (Cott Beverages) are comprised of a leading beverage platform with a full portfolio of non-alcoholic beverages, focussed on retailer brands and contract manufacturing. It is a profitable business with healthy margins and strong free cash flow, with 2016 revenues of US$1.7 billion, adjusted EBITDA of US$136.5 million and customer relationships with over 500 leading retailers.

The purchase price of US$1.25 billion includes a tax asset of US$75 million. Excluding the tax asset, the purchase price represents a multiple of 8.6 times the adjusted EBITDA of Cott’s bottling activities realised in 2016.

Refresco is projecting significant synergy potential of around €47 million to be attained within three years of closing. The deal is subject to customary conditions, including anti-trust approval in various jurisdictions and Refresco shareholder approval.

Integration will start immediately after closing with the UK, representing around 30% of Cott’s business, being integrated into Refresco Europe and the North American organisation being combined with Refresco US.

Hans Roelofs, chief executive of Refresco.

Hans Roelofs, chief executive of Refresco, comments: “This transaction marks a step change in the industry that reinforces Refresco’s position as a leading independent bottler for retailers and A-brands. Last year in September we acquired Whitlock Packaging, marking our entrance into the North American market and the start of our second platform for growth. This is a truly transformational deal, right at the heart of our buy & build strategy. Being able to acquire Cott’s bottling activities is an opportunity we have been studying for the last decade, and today, having grown the company through many successful acquisitions, we have the size, track record and execution power to take this significant leap forward.”

He continues: “The bottling activities of Cott are a perfect strategic fit to our current activities. With the acquisition we create nationwide coverage in the US, the largest single soft drinks market globally, while adding significant capacity and extending our broad product portfolio in the UK. A total of 29 production sites, producing a volume of over 4 billion litres of products, will be added to our already extensive manufacturing footprint and upon completion, Refresco will produce approximately 12 billion litres for all leading retailers and A-brands.”

Jerry Fowden, chief executive of Cott Corporation, says: “After a thorough strategic review in 2013, we developed an accelerated diversification and acquisition strategy in order to transform our company and create a business weighted towards better-for-you products in categories with top-line growth, a more diverse channel and customer base, higher margins, and strong free cash flow generation. This transaction is very much in line with this strategy, and enables our traditional business to become an integral part of a larger global beverage manufacturing company that pursues the same high customer service and quality standards Cott has been known for throughout its history.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements