Cadbury Schweppes plc (NYSE: CSG) announced yesterday that it has reached an agreement to sell its Royal Crown (RC) Cola’s International business and its private label concentrate supply agreement to Cott Corporation for a consideration of 68.4 million pounds sterling (US $94 million).
“The decision to sell these businesses reflects Cadbury Schweppes’ strategy to operate higher growth potential businesses in our core markets. These markets are driving growth for the company and creating value for our shareowners,” said John Brock, Cadbury Schweppes’ Chief Operating Officer.
The RC International business sale relates to approximately 60 countries, with Israel and the Philippines being the principal markets. The transaction excludes RC Cola’s operations in the United States, Canada, Puerto Rico and Mexico. The sale of the private label concentrate supply agreement relates to its operations world-wide and includes the disposal of RC Cola’s concentrate production site in Columbus, Georgia. The disposal proceeds will be used to reduce borrowings.
Cadbury Schweppes acquired RC Cola in September 2000 as part of its 986 million pounds (US $1.45 billion) acquisition of Snapple Beverage Group.
Cadbury Schweppes is a major global company which manufactures, markets and distributes branded beverages and confectionery products around the world. With origins stretching back over 200 years, today Cadbury Schweppes’ products — which include brands like Cadbury, Schweppes, Dr. Pepper, Snapple, Trebor and Bassett — are enjoyed in almost 200 countries across the world. Employing over 36,000 people, the Cadbury Schweppes group is the world’s third largest soft drinks company and the fourth largest confectionery company.