Cott Corporation acquires Macaw Soft Drinks in the U.K.
The acquisition significantly expands Cott's U.K. business and is expected to add approximately $100 million USD in annual sales.
11/08/05 Cott Corporation, the world's largest retailer brand soft drink supplier, today announced that its U.K. subsidiary, Cott Beverages Ltd., has acquired 100% of the shares of Macaw (Holdings) Limited, the parent company of Macaw (Soft Drinks) Limited, for approximately $135 million USD ( pnds stlg 75.7 million).
Macaw is the largest privately-owned manufacturer of retailer brand carbonated soft drinks in the U.K. Its assets include six production lines - four carbonated soft drink, one dilute-to-taste, and one aseptic - in two manufacturing plants located in Nelson, Lancashire.
The acquisition significantly expands Cott's U.K. business and is expected to add approximately $100 million USD ( pnds stlg 55 million) in annual sales. It is expected to be earnings per share neutral in 2005 and accretive thereafter. The acquisition is being financed under Cott's global credit facility, which was increased from $100 million to $225 million in connection with this transaction. This will leave $75 million available under the credit facility.
As a result of the transaction, for fiscal 2005 Cott now expects full- year sales growth of between 8% and 10%, EBITDA of between $215 and $220 million and capital expenditures of approximately $100 million. Earnings per diluted share are still expected to be between $1.06 and $1.11.
Cott's U.K. division recently reported 12% growth in sales in the second quarter compared to the previous year (9.2% excluding the impact of foreign exchange). Carbonated soft drinks, dilute-to-taste and still beverages are manufactured in two plants located in Pontefract and Kegworth. Cott expanded to the U.K. in 1994 with the acquisition of assets from Ben Shaw (Pontefract)Limited, followed by the purchase of Hero Drinks Group (U.K.) Limited in 1997.
Cott Corporation is the world's largest retailer brand soft drink supplier, with the leading take home carbonated soft drink market shares in this segment in its core geographies of the United States, Canada, the United Kingdom and Mexico.
http://www.newswire.ca/en/releases/archive/August2005/10/c8786.html
