The deal would see both businesses reduce costs in production, logistics and administration, Britvic said. The takeover was expected to be completed by March 2017.
The acquisition was an “exciting opportunity” to build on Britvic’s first year in Brazil, according to its ceo Simon Litherland, after it completed a deal for Brazilian drinks concentrates maker Ebba in September 2015.
“Bela Ischia operates in a category where Britvic has proven capability of generating growth, launching new products and establishing brand leadership and is an excellent complementary fit with our existing business,” Litherland said.
‘A fantastic platform’
“We are confident that this complementary acquisition should create a fantastic platform to consolidate our strategic position in Brazil and generate additional shareholder value over the coming years.”
Bela Ischia operates in the ready-to-drink and liquid concentrates sectors of the drinks industry. It reported revenue of about £40M (R$160M) in its last full-year trading update, and profit of about £4.6M (R$18.5M).
Britvic, known for its Pepsi Max, 7Up and Lipton’s Ice Tea brands, would become more competitive in the Brazilian market following the takeover, it claimed. The deal was part of its global strategy, it said. The firm is pursuing international expansion across the children, family and adult drinks markets.
Britvic’s acquisition of Ebba in 2015 was a “success”, it claimed, after its juices brand Maguary and drinks concentrates brand Dafruta reported “excellent results”.
A Britivic statement said: “The strong first year in Brazil reinforces our confidence in Brazil as a market place for Britvic products and in the capability of the combined management team, drawn from Britvic plc and the local Ebba management.”
Meanwhile, Britvic reported a 10.1% rise in annual sales revenue to £1.43bn in November. Its Brazilian market performed “excellently”, generating £89.5M in revenue.
Britvic acquisition of Bela Ischia – at a glance
- £55M takeover of Brazilian drinks firm
- Expected completion of deal by March 2017
- Second Britvic takeover of Brazilian firm within 18 months