Carlsberg Group and Britvic PLC have reached an agreement on the terms of a recommended cash offer for the acquisition of Britvic by Carlsberg UK Holdings Limited, a wholly-owned subsidiary of Carlsberg. Britvic, a leading international soft drinks business, is the main partner for PepsiCo in the UK and Ireland.
Britvic is the largest supplier of branded still soft drinks and the number two supplier of branded carbonated soft drinks in Great Britain. The company also has a strong presence in Ireland, France, and Brazil with various well-known brands under its portfolio.
The acquisition values Britvic at approximately £3.3 billion, with the intention to create a new integrated beverage company named Carlsberg Britvic. This strategic move will enhance Carlsberg’s growth profile in Western Europe and generate significant cash flow.
Carlsberg has identified annual cost savings and efficiency improvements of £100 million, which are expected to be delivered over a 5-year period post-acquisition. Additionally, an agreement has been reached for the acquisition of Marston’s 40% stake in Carlsberg Marston’s Limited to facilitate full integration.
Carlsberg Group CEO Jacob Aarup-Andersen states, “With this transaction, we are creating an enhanced proposition across the UK and other markets in Western Europe. We are confident in the synergies that will be achieved through this partnership and look forward to expanding our global partnership with PepsiCo.”
PepsiCo Europe CEO Silviu Popovici adds, “We believe that the combination of Carlsberg and Britvic will strengthen sales and distribution capabilities for our brands in key markets. We are excited about the future prospects of this partnership and look forward to further expansion.”
Overall, the acquisition of Britvic by Carlsberg marks a significant step towards creating a leading multibeverage supplier with a comprehensive portfolio of market-leading brands.
