Cott sells off drinks manufacturing businesses

By James Ridler contact

- Last updated on GMT

Cott’s UK manufacturing business is to be sold as part of a £959M deal to Dutch beverage firm Refresco
Cott’s UK manufacturing business is to be sold as part of a £959M deal to Dutch beverage firm Refresco
Soft drink manufacturer Cott Beverages’ UK manufacturing business is to be sold by its US-headquartered owner Cott Corporation, as part of a deal worth almost £1bn.

The £959M ($1.25bn) sale to Rotterdam, Holland-based Refresco included Cott’s factory in Aberdeenshire, Scotland, which manufactures the Macb range of still and sparkling flavoured water.

The deal also includes Cott’s US and Mexico manufacturing businesses, but excludes its cola company – RCI International – and its associated concentrate facility.

Cott said the sale would allow the company to focus on its “better for you products” ​and its growing filtration products, water, coffee and tea categories.

Expected to close later this year

The acquisition is expected to close later this year, subject to certain conditions, including regulatory approval, Refresco shareholder approval and working capital adjustments.

Refresco’s chief executive officer Hans Roelofs said: “We have been focused on growing our platform in both North America and Europe and this transaction is a significant enhancement to our will provide Refresco with enlarged scale, synergies, and savings alongside Refresco's manufacturing footprint, geographic diversity and product range.

“We will now have a well-balanced portfolio with exposure to all categories for retailers in North America and Europe, in addition to a scale contract manufacturing footprint throughout these geographies from which to continue to grow organically.”

‘Manufacturing footprint’

Barclays acted as financial advisor to Cott while law firm Drinker Biddle & Reath acted as legal advisor. In addition, Cott turned to CMS for advice on Dutch law matters relating to the transaction.

Meanwhile, meat processor Hilton Food Group has confirmed reports that it is in talks to buy another company, believed to be Icelandic Seachill.

Hilton said it was in the early stages of talks for a potential acquisition last week (August 1). The food group – which supplies the UK’s largest supermarket Tesco – had been reported to be in exclusive talks with Icelandic Seachill’s owner, the Enterprise Investment Fund.

Related topics: Business News, Beverages

Related news

Show more

comments

Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Follow us

Featured Events

View more

Products

View more