Mississauga, Ont.-based Cott Corp. is acquiring privately owned Cliffstar Corp., a private-label juice producer based in Dunkirk, N.Y., for more than half a billion dollars. The $500-million deal will also see Cliffstar receive another $14 million over the next three years, and an additional payment of up to $55 million if it meets performance targets.
According to Cott CEO Jerry Fowden, the acquisition “expands Cott’s product portfolio and manufacturing capabilities, enhances our customer offering and growth prospects, and improves our strategic platform for the future.” Cott is currently one of the world’s largest pop manufacturers.
Fowden also notes that Cott expects to realize $20 million in annual cost efficiencies through the deal, plus a $75-million tax benefit.
Cliffstar has 11 U.S. plants, including five bottling and distribution operations, three fruit processing plants, two fruit receiving stations and one storage depot. As well as being the number-1 private-label juice manufacturer in the U.S., Cliffstar produces sports drinks, lemonade, enhanced waters, ready-to-drink teas, and lemon and lime juice for adding to beverages at home.