Britvic Sold to Carlsberg for £3.3 BillionBritvic Sold to Carlsberg for £3.3 Billion Britvic, the UK-based soft drink maker, has agreed to a £3.3 billion takeover offer from Danish brewing giant Carlsberg. The boards of both companies have reached an agreement over a recommended cash offer to acquire Britvic. London Essence Company Britvic owns the London Essence Company, which has become the fastest-growing mixer company in Great Britain with a retail sales value of almost £15 million. The company is the third-largest mixer brand in the UK after Schweppes and Fever-Tree. Carlsberg’s Plans Carlsberg describes Britvic as one of the leading soft drinks businesses in Great Britain, Western Europe, and Brazil. The brewer called the deal a “highly attractive opportunity.” The acquisition will build on Carlsberg’s bottling business in the Nordic region and strengthen its footprint in Western Europe. Leadership Quotes Jacob Aarup-Andersen, CEO of Carlsberg, said: “With this transaction, we are combining Britvic’s high-quality soft drinks portfolio with Carlsberg’s strong beer portfolio and route-to-market capabilities, creating an enhanced proposition across the UK and markets in Western Europe.” Ian Durant, non-executive chair of Britvic, added: “The proposed transaction creates an enlarged international group that is well-placed to capture the growth opportunities in multiple drinks sectors.” Combined Company The brewing firm plans to create a single enlarged company named Carlsberg Britvic. The new company will have a strong platform to continue its success and remain competitive in the market.
Soft drink maker Britvic, owner of mixer brand London Essence Company, has agreed to a £3.3 billion (US$4.2bn) takeover offer from Danish brewing giant Carlsberg.
London Essence Company was given a redesign this year
The boards of Carlsberg and UK-based Britvic have reached an agreement over a recommended cash offer to buy the soft drink producer.
Hemel Hempstead-headquartered Britvic had previously rejected takeover offers from Carlsberg on the grounds that they undervalued the company.
The London Essence Company was created by Britvic-backed incubator outfit WiseHead Productions in 2016. It became the fastest-growing mixer company in Great Britain in 2022 with a retail sales value of almost £15 million (US$18m).
In the UK, London Essence is the third-biggest mixer brand after Schweppes and Fever-Tree. Earlier this year, London Essence revealed a rebrand and a new can format.
Britvic’s soft drink portfolio includes Robinsons, Tango, Fruit Shoot and J20. The company is also the main partner for PepsiCo in the UK and Ireland.
Carlsberg describes Britvic as one of the leading soft drinks businesses in Great Britain, Western Europe and Brazil.
The brewer called the deal a ‘highly attractive opportunity’ for the company, that will also support its growth ambitions.
The acquisition will build on Carlsberg’s bottling business in the Nordic region, and ‘deepen and strengthen its footprint’ in Western Europe, an important region for the brewer.
Jacob Aarup-Andersen, CEO of Carlsberg said: “With this transaction, we are combining Britvic’s high-quality soft drinks portfolio with Carlsberg’s strong beer portfolio and route-to-market capabilities, creating an enhanced proposition across the UK and markets in Western Europe.
“The proposed transaction is attractive for shareholders of Carlsberg, supporting our growth ambitions and being immediately earnings accretive and value accretive in year three. We are excited about expanding our global partnership with PepsiCo and believe that the longer-term opportunities will be very beneficial for both companies.”
‘Growth opportunities in multiple drinks sectors’
The brewing firm plans to create a single enlarged company, which will be named Carlsberg Britvic.
Ian Durant, non-executive chair of Britvic, added: “Britvic is an outstanding business with a strong heritage built on its portfolio of family-favourite brands, long-standing customer relationships, a well-invested supply chain infrastructure and a fantastic team of people across multiple markets.
“All these factors have supported a consistent track record of delivery for Britvic’s stakeholders over a sustained period of time. The proposed transaction creates an enlarged international group that is well-placed to capture the growth opportunities in multiple drinks sectors.
“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.”
