Friday, November 22, 2024

Carlsberg agrees to buy Robinsons squash maker Britvic

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Carlsberg has agreed a £3.3bn deal to buy Britvic, the company which makes drinks such as Robinsons squash and J20.

The Danish brewer said it would create a single beverage company called Carlsberg Britvic to grow its business in the UK and western Europe.

Britvic chairman Ian Durant said the merits of Carlsberg’s takeover offer were “compelling”.

The deal will see existing Britvic investors receive £13.15 a share, after a previous lower offer was rejected last month.

Mr Durant said the takeover by Carlsberg would create “an enlarged international group that is well-placed to capture the growth opportunities in multiple drinks sectors”.

Britvic shareholders will vote on the proposed takeover at a general meeting in the coming months.

The soft drinks company posted strong results for the latest quarter, despite wet weather across Europe, with group revenues growing by 6.3% to £502.9m in the three months to June 30.

Russ Mould, investment director at AJ Bell, said Britvic would add “some diversification” to Carlsberg’s portfolio.

“The Danish outfit is having to react to a world in which younger age groups are less likely to indulge heavily in alcohol,” he said.

Britvic holds an exclusive licence with US firm PepsiCo to make and sell brands such as Pepsi, 7up and Lipton iced tea in the UK, and Carlsberg also has a bottling deal with the US company.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the takeover would give Carlsberg the chance to expand its global partnership with PepsiCo “and streamline its bottling operations across European markets and now the UK”.

In a separate deal on Monday, Carlsberg also agreed to take control of its UK brewing joint venture with Marston’s, which makes beers including Hobgoblin and Pedigree.

Marston’s confirmed it will receive £206m to sell Carlsberg its 40% stake in the venture.

“It’s rare to see a business do two deals in one day, but sometimes the stars simply align,” added Mr Mould.

“The concurrent decision to buy Marston’s out of the pair’s brewing joint venture suggests beer remains a big part of Carlsberg’s ongoing story.”

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