Cadbury Schweppes buys Pernod's
soft drinks brands for £442m
LONDON - Cadbury Schweppes has bought Pernod Ricard's soft drinks brands and businesses in key markets for £442m.
Cadbury will acquire the Orangina, Pampryl fruit juice brand, Champomy and Yoo-Hoo brands in Europe, North America and Australia. The acquisition is subject to regulatory approval by EU and US competition authorities.
The businesses being acquired had sales in 2000 of £294m and pro-forma Ebitda of £40m. Orangina accounts for approximately half of the total volume being acquired.
Under a separate arrangement, Pernod Ricard also has an option to sell its soft drinks business in all other countries to Cadbury Schweppes at a future date, for a separate consideration not expected to exceed £22m.
In a statement, Cadbury Schweppes said, "The acquisition of Pernod Ricard's soft drinks business will significantly strengthen the position of Cadbury Schweppes in France, Europe's third-largest soft drinks market, through a broader product portfolio including the leading carbonated orange drink Orangina, which is the number two brand in the overall French soft drinks market."
In the US, Orangina and Yoo-Hoo are premium brands which complement the existing beverages businesses of Cadbury Schweppes.
In addition to the purchase price, Cadbury Schweppes has agreed to make a payment to Pernod Ricard, estimated at approximately £11m, to compensate Pernod Ricard for certain tax liabilities arising from the transaction structure. This cost is exceeded by the tax benefits accruing over time to Cadbury Schweppes.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum here.
Latest jobs Jobs web feed
- Junior Account Director / Account Director - Fabulous Global Agency - Central London - to £47k Fill Recruitment Ltd to £47k, Central London
- business director > TOP LONDON AGENCY > ATL collectivo Up to £90,000 + great benefits, London
- ACCOUNT MANAGER | Integrated Agency | Confectionery | up to £30k Judi Patton up to £30k, London
- ACCOUNT DIRECTOR - Creative London Agency - MOBILE/Social Media - £40-47k Judi Patton £40-47k, London
- Senior Account Exec/Account Manager - Integrated (6 months+) Stopgap £22000 - £25000 per annum, London
- Digital Account Manager The Little Black Book Agency £23000 - £26000 per annum, Manchester