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Refresco to buy Cott's bottling activities for $1.25bn

PKBR Staff Writer Published 26 July 2017

Soft drinks and fruit juices bottler Refresco has agreed to acquire Cott's bottling activities for $1.25bn.

The deal includes Cott’s traditional beverage manufacturing business (Cott Beverages) and the company’s North America, UK, and Mexico businesses.

It does not include the RCI International division and its associated concentrate facility as well as the Aimia Foods division.

The bottling activities of Cott include a beverage platform with a portfolio of non-alcoholic beverages, focused on retailer brands and contract manufacturing.

The acquired activities include $1.7bn revenue, $136.5m adjusted EBITDA business. The acquisition includes all the hot fill and cold fill activities, across all categories: carbonated soft drinks, juices and juice drinks, sparkling waters, mixers and others.

Cott Beverages produces various types of beverages in several packaging formats and sizes, including carbonated soft drinks, 100% shelf stable juice and juice-based products, energy drinks, ready-to-drink alcoholic beverages, and several others.

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed in the second half of this year.

In September 2016, Refresco acquired Whitlock Packaging, marking its entry into the North American market and the start of its second platform for growth.

Refresco CEO Hans Roelofs said: "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.”

Cott CEO Jerry Fowden said: "This transaction provides a unique opportunity for Cott Beverages to become an integral part of a larger beverage manufacturing company creating a business that will have a broader portfolio of products as well as expanded facility capabilities and geographic presence which will create new and exciting opportunities for its employees and customers alike.”

Image: Refresco headquarters. Photo: courtesy of Refresco / Richard Sinon.