With Dutch based Refresco announcing its purchase of rival soft drink manufacturer Cott Corp. for £959mn, the investment looks to be good a sound one following Cott’s strong second quarter results.
The firm’s revenue is up 33% from $1,014mn to $765mn, whilst its gross profit saw a similar percentage increase, up 36% from $253mn to $342mn.
Refresco, who work with well-known brands including Del Monte, Sunny D, Innocent and Ocean Spray, will now expand their portfolio with the acquisition of Calypso, Old Jamaica and other brands through their purchase of Cott.
Cott’s Chief Executive Officer Jerry Fowden talked of his excitement, both with the recent figures and with the future prospects that the sale to Refresco will provide.
“I am pleased with the performance of our water and coffee solutions segment during the quarter as we continued to see top and bottom line growth,” he said.
“As I look forward, I am excited about the opportunities that lie ahead to grow our water and coffee solutions businesses given the reduced leverage we will have following the announced transaction to sell our traditional business.
“As we progress towards the closing of the sale of our traditional business, our motto is business as usual and it was good to see an improved top line in our traditional business during the quarter, especially in the UK.”
Refresco’s CEO Hans Roelofs echoed Fowden’s enthusiasm:
“We have been focused on growing our platform in both North America and Europe and this transaction is a significant enhancement to our buy and build strategy, which will provide Refresco with enlarged scale, synergies and savings alongside Refresco’s manufacturing footprint, geographic diversity, product range and customer service.”
The merger will see Refresco take control of Cott’s Mexico, US and UK businesses, but excludes both its Aimia Foods Division in the UK and the RCI international division.