Cott to sell its beverage business
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Cott is selling its traditional beverage manufacturing business for US$1.25 B to a U.S.-based company
Toronto – Cott Corporation has announced that it’s selling its traditional beverage manufacturing business for US1.25 billion.
In a statement, the company says the buyer is Refresco, an independent bottler of soft drinks and fruit juices based in Florida.
The transaction includes “Cott’s North America, UK and Mexico businesses (excluding the RCI International division and its associated facility as well as the Aimia Foods division).”
Cott has been manufacturing a mix of beverages for retail and branded manufacturers for more than 60 years and, according to the statement, is considered “one of the world’s largest producers of beverages on behalf of retailers, brand owners and distributors.”
It manufactures beverages in various packaging formats and sizes, including:
• carbonated soft drinks
• 100% shelf stable juice
• juice-based products
• energy drinks
• clear, still and sparkling flavoured water
• sports drinks
• new age beverages
• ready-to-drink teas
• ready-to-drink alcoholic beverages
The company has revenues of approximately $1.7 billion.
“The sale of Cott’s traditional business substantially accelerates our ability to deleverage the business and positions us well to grow our water, coffee, tea and filtration businesses both organically and through value accretive tuck-in acquisitions while also giving us the optionality to expand our platforms through larger scale acquisitions if and when the right value enhancing opportunities present themselves,” says Jerry Fowden, Cott’s CEO.
The statement says the sale is expected to help Cott:
- Improve top-line growth and stability
- Enhance overall gross profit and EBITDA margins
- Significantly reduce net leverage
- Reduce customer concentration
- Reduce commodity exposure
- Shift Cott’s core focus to the growing categories of water, coffee, tea and filtration
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