Refresco shareholders approve Cott's $1.2bn traditional beverage business acquisition
Refresco Group shareholders have granted approval for the acquisition of Global Cott's traditional beverage manufacturing business Cott Beverages for $1.25bn in cash.
As part of the deal, Refresco will be acquiring Cott’s North America, UK, and Mexico traditional beverage businesses. Cott’s RCI International division, its associated concentrate facilities, and the Aimia Foods division are not included.
Cott's chief executive officer Jerry Fowden said: "We are pleased with the Refresco shareholders' vote in favour of the transaction.
"This vote brings us one step closer to completing the sale of our traditional business, and I am excited about the growth opportunities that lie ahead for our water, coffee, tea, and filtration services businesses."
Subject to the satisfaction of closing conditions, including regulatory approvals, the transaction is expected to be closed in Q4, 2017.
Refresco CEO Hans Roelofs said: "The bottling activities of Cott are a perfect strategic fit to our current activities. With this acquisition, we create a nationwide coverage in the US, the largest single soft drinks market globally, while adding significant capacity and extending our broad product portfolio in the UK.
“It is a unique, transformational transaction marking a step change in the industry. It reinforces our position as leading independent bottler for retailers and A-brands, creating a company with combined production volumes of approximately 12 billion liters across 59 production sites.”