AG Barr and Britvic seal merger terms
Merger would result in £35m of cost synergies and 500 job cuts
By CFOWorld.co.uk staff | CFO UK | Published 11:07, 14 November 12
Carbonated and soft drinks makers AG Barr and Britvic have agreed terms of a merger which has the potential to create one of Europe's largest soft drinks conglomerate, it was announced on Wednesday.
AG Barr famous for its Irn Bru drink and Britvic for its Tango range, first commenced talks in September. The merger will leave Britvic shareholders with a 63 percent holding and AG Barr shareholders with the remaining 37 percent.
It is likely to see about 500 jobs cut out of a combined workforce of 4,000. The new company would be called Barr Britvic Soft Drinks plc with its head office in Cumbernauld and projected annual sales of over £1.5 billion.
Roger White, currently head of AG Barr, will be the chief executive of the merged company. The boards of AG Barr and Britvic believe that the combined group will be able to achieve recurring annual cost synergies of approximately £35 million, according to a Britvic spokesperson.
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