Cott sells beverage business to Refresco
Toronto-based Cott Corp. is selling its traditional beverage manufacturing business to Tampa, Fla.-based Refresco for $1.25 billion. The transaction includes Cott's North America, United Kingdom and Mexico businesses, excluding the RCI International division and its associated concentrate facility as well as the Aimia Foods division).
For over 60 years Cott Beverages has been a manufacturer of a diverse mix of beverages for private brands and branded manufacturers. It produces multiple types of beverages in a variety of packaging formats and sizes, including carbonated soft drinks, 100 percent shelf-stable juice and juice-based products, energy drinks, clear, still and sparkling flavored waters, sports drinks, new age beverages, ready-to-drink teas, freezables and ready-to-drink alcoholic beverages.
“After a thorough strategic review in 2013, we developed an accelerated diversification and acquisition strategy in order to transform our company and create a business weighted toward better-for-you products in categories with topline growth, a more diverse channel and customer base, higher margins, and strong free cash flow generation,” said Jerry Fowden, Cott’s CEO. “This transaction is very much in line with this strategy, and enables our traditional business to become an integral part of a larger global beverage manufacturing company that pursues the same high customer service and quality standards Cott has been known for throughout its history.”
Refresco CEO Hans Roelofs said the company is focused on growing its platform in both North America and Europe and the transaction is a significant enhancement to its 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.
“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 both organically and by pursuing our buy and build strategy," Roelofs said.