According to The Grocer, terms have now been agreed to create a company called Barr Britvic Soft Drinks.
Simon Bittlestone, managing director at Metapraxis the business analysis company, commented on the Britvic AG Barr merger: “M&A activity has been much reduced in recent years, but today’s announcement of the merger between soft drinks companies Britvic and AG Barr is a reminder of the potential for such deals to improve the commercial position of firms and generate synergies to drive increased shareholder value.
“A merger of this scale has huge implications for information to run the enlarged business. Selecting and then implementing information systems for the new organisation typically takes several years.
“Meanwhile, board members, senior executives and managers need access to the right data and performance insights so they can make fully informed decisions rapidly and achieve the anticipated benefits of the merger.”
Vasu Majumdar, a beverage sector specialist from Grant Thornton UK LLP’s corporate finance team, said: “The 10 year or so courtship has finally ended in a wedding! The merger – viewed more as a ‘reverse takeover’ by many in the city – should be highly beneficial for both parties, as long as they plan the financial engineering of Britvic’s debt pile.
“The two company’s products and strengths complement each other well. While AG Barr has performed strongly in wholesale and in the multiple retailers, it has invested less in the food service and on-trade sectors, which is something that Britvic with its Robinson’s and J20 brands is particularly strong in.
“One of the things that is key to the success of deals such as this is to ensure that all the businesses involved are working well together, not only culturally but in terms of their infrastructure, something that Roger White at AG Barr is well known for.”
Source: The Grocer/Metapraxis/Grant Thornton
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