14th May 2007 07:02
C&C Group Plc14 May 2007 Sale of Soft drinks business for €249 million Dublin, London, May 14, 2007: C&C Group plc ('C&C' or the 'Group'), a leadingmanufacturer, marketer and distributor of branded beverages in Ireland and theUK, today announced that it has entered into an agreement to sell its softdrinks division and related assets (Republic of Ireland distributionwholesaling) to Britvic plc ('Britvic') for a consideration of €249.2 million,payable in cash upon completion. Subject to Competition Authority approval,completion of the sale is expected to occur before 31 August 2007. The Group's soft drinks division comprises some of Ireland's leading beveragebrands including Club soft drinks and Ballygowan bottled water. The divisionalso includes franchises within the Irish market for 7UP and Pepsi soft drinks. For the year ended 28 February 2007, the Soft Drinks division and relatedbusiness generated revenue of €269.9 million while profits directly attributableto the assets were €15.6million. Operating profits reported within C&C'ssegmental analysis for the year ended 28 February 2007 (inclusive of centralcosts) were €13.0m and a restatement showing the impact of the disposal isattached. The gross assets of the Soft drinks and related businesses at 28February 2007 amounted to €151m. C&C intends to apply €150m of the proceeds to increase its previously announcedon-market share buy-back programme to €300m. The balance of the proceeds will beused for general corporate purposes. Maurice Pratt, Chief Executive of C&C, commented: "The Board of C&C is pleasedto announce its agreement to sell our soft drinks business to Britvic. The pricerealised for the business recognises the value of its iconic brands and strongposition in the Irish beverage market. Following this disposal, the Group has asharper business focus and will continue to capitalise on the exciting growthpotential presented by our Cider and Spirits & Liqueurs brand portfolio." Investors and analysts Financial adviser to C&C Mark Kenny/Jonathan Neilan Basil GeogheganK Capital Source Goldman SachsTel: +353 1 631 5500 Tel +44 207 774 4119Email : c&[email protected] Email: [email protected] Irish Media International Media Paddy Hughes Edward OrlebarDrury Communications M CommunicationsTel: +353 1 260 5000 Tel: +44 207 153 1523Email: [email protected] Email: [email protected] About C&C Group plc C&C Group plc is a leading manufacturer, marketer and distributor of brandedbeverages in Ireland and the UK. C&C manufactures the leading Irish cider brand,Bulmers, and the premium international cider brand, Magners, for export to theUnited Kingdom, the United States and Continental Europe. C&C also exportsspirits and liqueurs, including the premium Irish whiskey brand, Tullamore Dew,to over 80 international markets. RESTATEMENT OF SEGMENTAL RESULTS FOR YEAR ENDED 28 FEBRUARY 2007 Continuing Reported Disposals Operations •m •m •mRevenue Cider 517.9 - 517.9 Spirits & Liqueurs 79.1 - 79.1 Soft Drinks 185.2 (185.2) - Distribution 199.2 (84.7) 114.5 981.4 (269.9) 711.5 Operating Profit Cider 178.9 178.9 Spirits & Liqueurs 17.7 17.7 Soft Drinks 15.3 (15.3) - Distribution 0.7 2.3 3.0 Profit for continuing operations 212.6 (13.0) 199.6 Operating Profit % Cider 34.5% Spirits & Liqueurs 22.4% Distribution 2.6% 28.1% This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
C&C GroupBritvic