TORONTO and TAMPA, FL, U.S. – Cott Corporation has closed the previously announced sale of its traditional beverage manufacturing business (“Cott Beverages”) to Refresco (Euronext: RFRG) for USD $1.25 billion.
The transaction includes Cott’s North America, U.K., and Mexico businesses (excluding the RCI International division and its associated concentrate facility as well as the Aimia Foods division).
“I would like to take this opportunity to thank all of the management and team members of Cott Beverages who have worked so hard to manage the business over the years and bring this transaction to fruition,” said Jerry Fowden, Cott’s Chief Executive Officer.
“The sale of our traditional beverage manufacturing business allows us to significantly deleverage our balance sheet and positions us well to focus on accelerating growth across our route-based services platform in water, coffee, tea, extracts and filtration solutions,” continued Mr. Fowden.
The transaction is expected to:
- Improve top-line growth and stability
- Enhance overall gross profit and EBITDA margins
- Reduce net leverage
- Decrease customer concentration
- Reduce commodity exposure
- Shift Cott’s core focus to route-based services in the growing categories of water, coffee, tea, extracts and filtration
The sale proceeds are being used to redeem the remaining $250 million of our 10% DS senior secured notes and $525 million of our 5.375% notes, and to pay off the outstanding balance on our asset-based lending facility.
