Cadbury Schweppes confirmed yesterday it has completed the acquisition of the Snapple Beverage Group from Triarc Companies, Inc., for an enterprise value of $1,450 million (986 million pounds sterling). This is further to the announcement on 18 September 2000.
Snapple Beverage Group is a US premium beverage company whose brands include Snapple, Mistic, Stewart’s and Royal Crown Cola. Snapple is the leading brand in the profitable and high growth premium ready-to-drink tea and juice sector of the New Age beverage market.
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By GlobalDataDuring the year ended 31st December 1999, Snapple Beverage Group made EBITDA on a pro forma basis of US$111 million (76 million pounds) on turnover of $772 million (525 million pounds).
Significant operating synergies are expected with a net present value of around $500 million (340 million pounds).
In addition, Cadbury Schweppes will pay $200 million (136 million pounds) for the benefit of a US tax election which will generate annual tax savings over 15 years, with an estimated present value of $250 million (170 million pounds).
This acquisition meets Cadbury Schweppes value creation criteria and is expected, prior to goodwill amortisation and restructuring, to enhance EPS from the outset and to cover the Group’s weighted cost of capital within three years.
All relevant governmental and regulatory authorisations, consents and approvals have been received.
Note to editors:
£ equivalents of US$ have been translated at an exchange rate of £1: $1.47.
For further information:
David Kappler, Chief Financial Officer
Sally Jones, Corporate Communications Director
Dora McCabe, Head of Group Public Relations
Cadbury Schweppes plc: 020 7409 1313 www.cadburyschweppes.com
Angus Maitland,
The Maitland Consultancy: 020 7379 5151