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Cott completes sale of beverage manufacturing business to Refresco

Published 01 February 2018

Cott has completed the sale of its traditional beverage manufacturing business to Refresco in an all cash transaction worth $1.25bn.

The transaction includes Cott's North America, UK and Mexico businesses (excluding the RCI International division and its associated concentrate facility as well as the Aimia Foods division).

Cott's CEO Jerry Fowden said: "I would like to take this opportunity to thank all of the management and team members of Cott Beverages who have worked so hard to manage the business over the years and bring this transaction to fruition.

"The sale of our traditional beverage manufacturing business allows us to significantly deleverage our balance sheet and positions us well to focus on accelerating growth across our route-based services platform in water, coffee, tea, extracts and filtration solutions."

The transaction is expected to:

Improve top-line growth and stability

Enhance overall gross profit and EBITDA margins

Reduce net leverage

Decrease customer concentration

Reduce commodity exposure

Shift Cott's core focus to route-based services in the growing categories of water, coffee, tea, extracts and filtration 

The sale proceeds are being used to redeem the remaining $250m of our 10% DS senior secured notes and $525m of our 5.375% notes, and to pay off the outstanding balance on our asset-based lending facility.

Source: Company Press Release