UK's Britvic agrees to buy Brazilian juice company Bela Ischia
UK soft drinks firm Britvic has agreed to acquire Brazilian concentrate and juice business Bela Ischia Alimentos for R$218m (£54.5m).
Bela Ischia is said to have a large presence in key areas like Rio de Janeiro and Minas Gerais.
The acquisition strengthens Britvic’s brand portfolio in Brazil and creates a wider regional footprint by complementing the current Ebba strengths in Sao Paulo and in the country's north east region.
Britvic CEO Simon Litherland said: “Bela Ischia operates in a category where Britvic has proven capability of generating growth, launching new products and establishing brand leadership and is an excellent complementary fit with our existing business.
“Our due diligence to date has identified significant cost synergies and potential further revenue benefits arising from a broader brand portfolio and geographical presence. As a result, we are confident that this complementary acquisition should create a fantastic platform to consolidate our strategic position in Brazil and generate additional shareholder value over the coming years.”
The combined businesses, post acquisition is likely to turn into substantial cost savings, mainly from efficiencies gained in sourcing, production, administration and logistics, stated the company.
Apart from that, the UK soft drink maker also expects revenue benefits from marketing of the broader brand portfolio across a wider geographical area.
The acquisition is likely to close by March end following the meeting of specific closing conditions like a competition audit and final due diligence.
Apart from Ebba and now Bela Ischia, Britvic had also acquired liquid concentrate brands Maguary and Dafruta in Brazil in the recent past.
Image: Britvic Mixers and Juices range re-launched in October 2016. Photo: courtesy of Britvic PLC.