A north-east fizzy drink company is as good as sold after the Dutch buyer wrapped up a near-£1billion international takeover deal.
Rotterdam-based Refresco has snapped up a chunk of the business of US drink giant Cott, nearly doubling its production capacity across activities now employing more than 9,500 people at 59 sites in 12 countries.
The £935million deal included Cott Macduff, previously known as Sangs, along with other Cott UK beverage manufacturing and bottling business, and US, Canadian and Mexican operations.
Completion of the sale was announced this week following shareholder backing, approval in principle from the UK’s Competition and Markets Authority (CMA), and regulatory authorities in both the US and Canada.
CMA has not yet given its final blessing but it recently accepted an undertaking by Refresco to re-sell a factory in Nelson, Lancashire, in order to address its competition concerns about an “aseptic” production process which allows drinks to be sold preservative-free and without refrigeration.
For now, Refresco and Cott will continue to operate separately in the UK.
“Integration will commence once we have executed the proposed remedy,” Refresco said, adding: “In the UK, Cott’s bottling business will be integrated into Refresco Europe and Cott’s North American organisation will be combined with Refresco North America.”
Cott acquired Sangs – the Macduff-based firm behind the macb range of still and sparkling flavoured water, as well as the recently axed Moray Cup fizzy drink – in March 2012, rescuing it from administration.
Refresco’s activities in North America have been “significantly extended” by the acquisition of 22 manufacturing sites in the US, four in Canada and one in Mexico.
The group now has 26 manufacturing sites in continental Europe and six in the UK.
Chief executive Hans Roelofs said deal completion signalled “an important moment reinforcing our position as the leading industry player”.
He added: “Refresco will have greater opportunities to invest in innovation, to further optimise our business and achieve profitable growth.”