Cott To Sell Cott Beverages To Refresco For $1.25 Bln - Quick Facts

(RTTNews) - Cott Corp. (COT, BCB.TO) said it has entered into a definitive agreement to sell its traditional beverage manufacturing business, Cott Beverages, to Refresco for $1.25 billion. The company expects the transaction will shift its core focus to the growing categories of water, coffee, tea and filtration.

Refresco is an independent bottler of soft drinks and fruit juices for retailers and A-brands with production in Benelux, Finland, France, Germany, Italy, Poland, Spain, the UK and the U.S.

The transaction includes Cott's North America, U.K., and Mexico businesses, but it excludes the RCI International division and its associated concentrate facility as well as the Aimia Foods division.

Cott Beverages generates approximately $1.7 billion in revenues and its management team has longstanding customer relationships in North America and the United Kingdom. Subsequent to the closing of the transaction, Cott Beverages' leadership team will report to the Executive Board of Refresco.

Cott expects the transaction to improve its top-line growth and stability, enhance EBITDA margins and significantly reduce its net leverage.

The transaction, which is expected to close in the second half of 2017, is subject to certain closing conditions including regulatory approval as well as Refresco shareholder approval.