Acquisition

22nd May 2006 07:04

Barr(A.G.) PLC22 May 2006 For immediate release 22 May 2006 A.G.BARR p.l.c. A.G.BARR p.l.c. announces the acquisition of Strathmore Mineral Water from Constellation Brands, Inc A.G.BARR p.l.c. ("Barr"), the soft drinks group, today announces the acquisitionof the Strathmore Mineral Water Company ("Strathmore") from ConstellationBrands, Inc for a consideration of £15 million. The consideration will be paidin cash from existing resources at completion. Strathmore is a division of the US company Constellation Brands, Inc. Theunaudited management accounts of Strathmore show its sales in 2005/6 were £14.6million, and the business generated a net profit before taxation of£1.3 million. Gross assets of the division (including goodwill) were £15million. Strathmore bottles, markets and distributes still and sparkling spring water aswell as a range of flavoured spring waters throughout the United Kingdom.Strathmore is one of the leading brands in the UK water market and is a brandleader in food service and the on-trade. The acquisition of Strathmore will meet Barr's strategic objective of acquiringstrong brands in the soft drinks sector which have considerable growth potentialand operating synergies. The Strathmore brand is expected to benefit from Barr'sexpertise in the soft drinks market and its focused management approach. Thebusiness will be integrated into the Barr operating system which will over timerealise synergies to facilitate further investment in the Strathmore brand. The existing business between Strathmore and Matthew Clark Wholesale (the drinkswholesale business of Constellation) will, as a consequence of the purchase, befurther developed as the close links between these two companies will continueon an ongoing contractual basis. Barr Chief Executive, Roger White said, "We are excited about the acquisition of Strathmore and the opportunity which itpresents. The Strathmore brand will significantly enhance Barr's position in thefast growing water category and we consider there to be further developmentpotential for Strathmore and its product range. Strathmore is a natural fit toour existing portfolio and business, further strengthening our position as adiversified soft drinks business. Strathmore's leadership in the on-traderepresents an excellent platform from which to grow our presence in this keychannel. We look forward to developing the Strathmore brand and to welcoming itsemployees, customers and partners to A.G.Barr." For further information please contact: A.G.Barr p.l.c. Tel: +44 (0)141 554 1899 Roger White, Chief Executive Buchanan Communications Tel: +44 (0)20 7466 5000 Tim Thompson / Nicola Cronk NM Rothschild & Sons James Murray Tel: +44 (0)20 7280 5000 Notes to Editors: A.G.Barr p.l.c. A.G.BARR p.l.c. is a long established soft drinks manufacturer with its headoffice in Glasgow. As the country's leading independent branded carbonated softdrinks manufacturer, the company enjoys a wide portfolio of soft drinks,including Irn-Bru, Diet Irn-Bru, Irn-Bru 32, Findlays Water, Orangina, Tizer, D&B and the Simply Range. As the company's flagship brand, Irn-Bru continues to go from strength tostrength in the UK; in Scotland the brand remains firmly as the number onegrocery brand whilst in England and Wales it is steadily working to increase itsshare of the carbonate market. Following its re-launch last year, Diet Irn-Bruis performing exceptionally well, having connected with an increasing number ofcalorie-conscious consumers through a fully-integrated marketing campaign. The most important strategic product development to date from Barr is Irn-Bru32. Created as a 'refreshing and delicious energy drink' in response to marketdemand, Irn-Bru 32 is the first major extension to the Irn-Bru brand since thelaunch of Diet Irn-Bru 26 years ago and represents a £3 million investment.Utilising the main brand's secret ingredients but with the added intensity ofcaffeine and taurine, the brand encourages 'Pure Mental Stimulation' and is thefirst member of the Irn-Bru range to be introduced from launch at a UK-widelevel. Strathmore Mineral Water Strathmore, is the UK's leading "produced bottled water brand" and manufacturesstill, sparkling and flavoured spring water. All products are sold under theStrathmore brand and the company recently launched a Spring fruits range (whichcombines spring water and real fruit juice) and Strathmore Select (a premiumrange of flavoured spring waters). The company is a strong player in all sectorsof the bottled water market and in all channels of distribution This information is provided by RNS The company news service from the London Stock Exchange

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