Cadbury Schweppes plc announces that its Australian subsidiary, Cadbury Schweppes Pty Ltd, has today reached agreement to acquire the Spring Valley Juice brand name and the Wave UHT flavoured milk brand name from Bonlac Foods Ltd for a cash consideration of AUD 30 million (11.3 million pounds sterling (pounds)). Cadbury Schweppes Pty Ltd will also assume leasing facilities with a current value of AUD 15 million (5.67 million pounds).
Spring Valley Juice has an approximately 27% share of Australian single serve juices in the “route” (convenience) segment. Created in 1955, it has a premium brand positioning and is available in 20 innovative flavours. The Wave brand has established a 5% market share in the flavoured milk segment (a category growing at 7%) since launching in April 1999 and benefits from Bonlac’s recent investment in state-of-the art technology.
Commenting on the acquisition, John Brock, Chief Operating Officer of Cadbury Schweppes, said, “This acquisition builds further on our strong beverages business in Australia through the addition of a leading premium juice brand and a high quality flavoured milk brand. Spring Valley and Wave will also benefit from access to our more powerful distribution system.”
The transaction is a brand purchase and therefore the existing premises, contracts, production facilities and employees remain with Bonlac Foods Ltd.
The transaction is conditional on completion of due diligence, finalisation of contracts and the obtaining of any necessary regulatory approvals. It is expected to be completed by the end of the year.