Carlsberg strikes £3.3bn deal for FTSE 250-listed Britvic
Britvic has accepted a £3.3bn takeover offer from Danish drinks giant Carlsberg in the latest example of a listed firm being bought by an overseas suitor.
Carlsberg said it would pay a total of 1,315p per Britvic share, a premium of around 36 per cent to Britvic’s closing price on 19 June, the day prior to speculation emerged about a possible takeover.
The deal would comprise 1,290p per share in cash as well as a 25p per share special dividend.
Directors at Britvic said the offer was “fair and reasonable,” and they recommended unanimously that shareholders vote in favour of the scheme.
Britvic is the owner of drinks brands like Fruit Shoot and Robinsons. It also has a contract to distribute Pepsico’s brands like Pepsi and 7UP in the UK.
Pepsico gave the merger its blessing at the end of June.
Carlsberg said the deal would build on its successful bottling business in the Nordic region and strengthen its footprint in Western Europe.
“Carlsberg’s intention is to accelerate commercial and supply chain investments in Britvic, driving the future growth trajectory of the business,” the statement noted.
After the acquisition is completed, Carlsberg will create a single integrated beverage company in the UK, Carlsberg Britvic.
The Danish drinks giant said it expected the acquisition to be accretive by a mid-single-digit percentage to adjusted EPS in the first year after completion and by a double-digit percentage in year two.
“The proposed transaction creates an enlarged international group that is well-placed to capture the growth opportunities in multiple drinks sectors,” Ian Durant, Non-Executive Chair of Britvic, said.
“Crucially, to remain competitive at a time when the market is being shaped by the trend of increasing consolidation among bottling partners, Carlsberg’s agreement with Pepsico provides the combined group with a strong platform for continued success,” Durant continued.
Separately, in a trading statement issued alongside the deal, Britvic said revenue had grown 9.3 per cent across the group for the nine months to 30 June 2024.
In its fiscal third quarter, revenue expanded by 6.3 per cent. Brazil was a standout performer, with sales up 48.1 per cent with both growth from the existing brand portfolio and “continued acceleration in energy following the Extra Power acquisition.”