Source: Cott Corporation
July 8 2010 - Cott Corporation announced that it has signed a definitive agreement to acquire privately-held Cliffstar Corporation, the leading private label manufacturer of shelf stable juices, for cash consideration of $500 million, payable at closing, and subject to adjustments for working capital and other items.
In addition to the $500 million due at signing, Cliffstar is entitled to $14 million of deferred consideration, which will be paid over a three-year period. Cliffstar is also entitled to an additional contingent earnout consideration of up to a maximum of $55 million, based upon the achievement of certain performance measures during the fiscal year ending January 1, 2011 as well as the successful completion of certain expansion projects in 2010. Cott expects to receive a significant cash tax benefit generated from the deduction of the step-up in tax basis resulting from the acquisition of Cliffstar’s assets. The net present value of this cash tax benefit is estimated to be approximately $75 million. The closing of the transaction is subject to receipt of financing and other customary conditions, including receipt of required regulatory approvals.
“As the clear leader in private label shelf-stable juice, Cliffstar is an ideal partner for Cott as we strengthen our position in private label beverages,” said Jerry Fowden, Chief Executive Officer of Cott. “A combination with Cliffstar expands Cott’s product portfolio and manufacturing capabilities, enhances our customer offering and growth prospects, and improves our strategic platform for the future. Combined with Cliffstar, Cott will be a more diversified company with long-term advantages for our shareowners and retailer partners.”
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Cott Corporation
Address: 6525 Viscount Road Mississauga, ON L4V 1H6 Canada
Telephone: +1-905-6721900
Fax: +1-905-6725229
About Cott Corporation
Cott Corporation (Cott) is a non-alcoholic beverage company and a provider of retailer brand soft drink. In addition to carbonated soft drinks (CSDs), the Company’s product lines include clear, still and sparkling flavored waters, juice-based products, bottled water, energy drinks and ready-to-drink teas. The Company operates in five segments: North America (which includes the United States reporting unit and Canada reporting unit); United Kingdom (which includes its United Kingdom reporting unit and its Continental European reporting unit); Mexico; Royal Crown International (RCI), and All Other (which includes its Asia reporting unit and its international corporate expenses). During the fiscal year ended December 27, 2008 (fiscal 2008), Cott closed its Asian operations.