The deal will allow Refresco to significantly increase its access to the North American market, following its move for Whitlock Packaging a year ago.
Refresco has agreed to acquire Cott Corporation’s soft drinks business for $1.25 billion.
The move for Cott Beverages creates the largest independent bottler in Europe and North America with a combined production volume of approximately 12 billion litres. The business is profitable, Refresco said, with revenue of $1.7 billion in 2016 and pre-tax earnings of $136.5 million.
Refresco expects the deal to deliver synergies of around €47 million within three years of closing, which could be as soon as this quarter.
Refresco chief executive officer Hans Roelofs stated that the company is excited to welcome Cott Beverages to the Refresco family. The company has been focused on growing our platform in both North America and Europe and this transaction is a significant enhancement to our buy and build strategy which will provide Refresco with enlarged scale, synergies, and savings alongside Refresco’s manufacturing footprint, geographic diversity, product range and customer service.
Cott’s products span categories such as carbonates, energy drinks, bottled water and shelf-stable juices.
It is one of North America’s largest private-label producers of beverages on behalf of retailers, brand owners and distributors. It also operates brands such as Cott, Red Rain, Vess cola, Vintage Seltzer and Harvest Classic juice.
The company owns 19 production sites in the US, four in Canada, one in Mexico and five in the UK.
The deal will allow Refresco to significantly increase its access to the North American market, following its move for Whitlock Packaging a year ago.
The acquisition won’t affect Cott’s water delivery or coffee businesses, which will remain separate. They include DS Waters; Eden Springs, the European water delivery company acquired by Cott in June 2016; and S&D Coffee, which it bought for $355 million the following month.