Denmark & UK: Carlsberg agrees to buy soft drinks business Britvic

Carlsberg has reached an agreement on the terms of a recommended cash offer to acquire soft drinks business Britvic, The Morning Advertiser reported on July 8.

Following two previously rejected bids, the Britvic board accepted an improved offer from Carlsberg.

The Danish brewer said the acquisition represented a “highly attractive opportunities”, supporting its growth ambitions.

Britvic’s board has unanimously recommended shareholders vote in favour of the deal at an upcoming general meeting.

Carlsberg intends to create a single integrated beverage company in the UK, which will be named Carlsberg Britvic.

The acquisition is expected to enhance Carlsberg’s top and bottom line growth in western Europe and significantly increase the level of cash flow generated in the region.

Carlsberg Group CEO Jacob Aarup-Anderson said: “With this transaction, we are combining Britvic’s high-quality soft drinks portfolio with Carlsberg’s strong beer portfolio and route-to-market capabilities, creating an enhanced portfolio across the UK and other markets in western Europe.

“The proposed transaction is attractive for shareholders of Carlsberg, supporting our growth ambitions, being immediately earnings accretive and value-accretive in year three. We are excited about expanding our global partnership with PepsiCo and believe that the longer-term opportunities will be very beneficial for both companies.

“We are pleased the Britvic Board is unanimously recommending our offer to Britvic shareholders.

“We look forward to welcoming Britvic’s employees into the Carlsberg family and creating an exciting, combined company for all employees. We are committed to accelerating commercial and supply chain investments in Britvic, and we are confident that Carlsberg Britvic will become the preferred multi- beverage supplier to customers in the UK with a comprehensive portfolio of market-leading brands.”

The combination is expected to create even stronger sales and distribution capabilities in important markets, according to PepsiCo Europe CEO Silviu Popovici.

He added: “We are looking forward to building on our long-standing and successful partnerships with both Carlsberg and Britvic.

“We look forward to continuing to expand the partnership into further important markets in the future."

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