Refresco Gerber to acquire PepsiCo German bottling facility

European soft drinks bottler Refresco Gerber has entered into an agreement to acquire a bottling facility in Germany from PepsiCo, bolstering its co-packing activities.

The acquisition of the plant in Hamburg fits Refresco Gerber’s buy-and-build strategy and further strengthens its footprint in the German soft drinks and fruit juices market, the company said in a statement. Included in the terms of agreement is a ten-year co-packing agreement with PepsiCo, which operates brands such as Punica and Lipton in the European marketplace.

Refresco Gerber CEO Hans Roelofs said: “This transaction lies at the heart of our buy-and-build strategy and confirms our focus on expanding our co-packing business. It further strengthens our relationship with one of our key customers, PepsiCo, for whom we already provide co-packing activities in France, Spain, Benelux and the UK.

“Germany is an important region for Refresco Gerber and with this acquisition, we take an important leap forward in our German co-packing activities and further improve our market presence.”

The acquisition is subject to the approval of German competition authorities and is expected to complete in the second quarter of 2016. Financial terms have not been disclosed.