In a deal worth £3.3 billion (€3.9 billion), Carlsberg has confirmed they will take over soft-drink company Britvic. This move will further the Danish company’s bottling operations across the United Kingdom. This arrangement follows after Britvic turned down two initial proposals from Carlsberg, claiming that the latter wasn’t placing enough value on a group whose portfolio includes brands such as Robinsons and Fruit Shoot.
In addition to manufacturing its proprietary brands, Britvic also serves as the bottler for PepsiCo in the UK, while Carlsberg does the same for PepsiCo in numerous locations including Norway, Sweden, Switzerland, Cambodia, and Laos. Carlsberg’s chief executive, Jacob Aarup-Andersen, expressed his excitement about this deal and is optimistic about the expansion of their global partnership with PepsiCo, citing that the long-term opportunities will be very beneficial for both parties involved.
As per the agreed-upon terms of the deal, Carlsberg will be paying 1,290p in cash for each Britvic share, along with a provision of Britvic shareholders receiving a special 25p dividend. Prior to this, Britvic had refused earlier proposals of 1,200p and 1,250p per share. The recent proposal offers a significant premium – approximately 36% in relation to Britvic’s closing share price of 970p on June 19, just a day prior to whispers of Carlsberg’s interest in the London-based enterprise began.
Britvic, which originated in the 1930s by a chemist in Chelmsford, Essex, producing soft drinks, will play a significant role in Carlsberg’s history with this acquisition. The Danish brewer anticipates savings of £100 million in costs over five years due to this purchase. This acquisition will also grant Carlsberg a greater presence in the UK market, where it currently stands as the fourth leading beer manufacturer. Recently, Carlsberg also gained control over a brewing joint venture with UK group Marston’s. This text is protected by Copyright The Financial Times Limited 2024.