Cott To Buy Private Label Juice Producer In New York
Cott, a Canada-based producer and marketer of non-alcoholic beverages, has signed a definitive agreement to acquire New York-based Cliffstar, a manufacturer of shelf stable juices, for cash consideration of $500m.
Cott expects that the transaction brings many advantages such as: a more balanced business with a diversified and complementary portfolio across many categories of private label beverages; a broader portfolio with increased capabilities and high service levels as a combined supplier across multiple beverage categories.
The company added that total identified cost synergies of $20m on an annualized basis, $14m of which is expected to be realized in 2011.
Cott operates bottling facilities in the US, Canada, the UK and Mexico. It markets non-alcoholic beverage concentrates in around 50 countries around the world.
Cliffstar is headquartered in Dunkirk, New York, and operates 11 facilities in the US including five bottling and distribution operations, three fruit processing facilities, two fruit receiving stations and one storage facility, and has approximately 1,300 employees.
In addition to serving various private label lines with nearly 145 blends of juices, Cliffstar presses most of its own grapes, cranberries, and prunes.
Jerry Fowden, chief executive officer of Cott, said: “As the clear leader in private label shelf-stable juice, Cliffstar is an ideal partner for Cott as we strengthen our position in private label beverages.
A combination with Cliffstar expands Cott’s product portfolio and manufacturing capabilities, enhances our customer offering and growth prospects, and improves our strategic platform for the future. Combined with Cliffstar, Cott will be a more diversified company with long-term advantages for our shareowners and retailer partners.”
Stanley Star, chairman of the board and co-founder of Cliffstar, said: “In Cott, we have found the right long-term strategic partner for Cliffstar. Cott, like Cliffstar, has a long history of private label excellence and quality as well as close partnerships with its customers and suppliers.
In addition to a strong position in juice and various new age growth segments, Cliffstar brings expertise in juice ingredients, processing and bottling that are complementary to Cott’s strengths in carbonated soft drinks.”
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