Barr(A.G.) PLC
22 May 2006
For immediate release 22 May 2006
A.G.BARR p.l.c.
A.G.BARR p.l.c. announces the acquisition of Strathmore Mineral Water from
Constellation Brands, Inc
A.G.BARR p.l.c. ('Barr'), the soft drinks group, today announces the acquisition
of the Strathmore Mineral Water Company ('Strathmore') from Constellation
Brands, Inc for a consideration of £15 million. The consideration will be paid
in cash from existing resources at completion.
Strathmore is a division of the US company Constellation Brands, Inc. The
unaudited management accounts of Strathmore show its sales in 2005/6 were £14.6
million, and the business generated a net profit before taxation of
£1.3 million. Gross assets of the division (including goodwill) were £15
million.
Strathmore bottles, markets and distributes still and sparkling spring water as
well as a range of flavoured spring waters throughout the United Kingdom.
Strathmore is one of the leading brands in the UK water market and is a brand
leader in food service and the on-trade.
The acquisition of Strathmore will meet Barr's strategic objective of acquiring
strong brands in the soft drinks sector which have considerable growth potential
and operating synergies. The Strathmore brand is expected to benefit from Barr's
expertise in the soft drinks market and its focused management approach. The
business will be integrated into the Barr operating system which will over time
realise synergies to facilitate further investment in the Strathmore brand.
The existing business between Strathmore and Matthew Clark Wholesale (the drinks
wholesale business of Constellation) will, as a consequence of the purchase, be
further developed as the close links between these two companies will continue
on an ongoing contractual basis.
Barr Chief Executive, Roger White said,
'We are excited about the acquisition of Strathmore and the opportunity which it
presents. The Strathmore brand will significantly enhance Barr's position in the
fast growing water category and we consider there to be further development
potential for Strathmore and its product range. Strathmore is a natural fit to
our existing portfolio and business, further strengthening our position as a
diversified soft drinks business. Strathmore's leadership in the on-trade
represents an excellent platform from which to grow our presence in this key
channel. We look forward to developing the Strathmore brand and to welcoming its
employees, customers and partners to A.G.Barr.'
For further information please contact:
A.G.Barr p.l.c. Tel: +44 (0)141 554 1899
Roger White, Chief Executive
Buchanan Communications Tel: +44 (0)20 7466 5000
Tim Thompson / Nicola Cronk
NM Rothschild & Sons
James Murray
Tel: +44 (0)20 7280 5000
Notes to Editors:
A.G.Barr p.l.c.
A.G.BARR p.l.c. is a long established soft drinks manufacturer with its head
office in Glasgow. As the country's leading independent branded carbonated soft
drinks manufacturer, the company enjoys a wide portfolio of soft drinks,
including Irn-Bru, Diet Irn-Bru, Irn-Bru 32, Findlays Water, Orangina, Tizer, D&
B and the Simply Range.
As the company's flagship brand, Irn-Bru continues to go from strength to
strength in the UK; in Scotland the brand remains firmly as the number one
grocery brand whilst in England and Wales it is steadily working to increase its
share of the carbonate market. Following its re-launch last year, Diet Irn-Bru
is performing exceptionally well, having connected with an increasing number of
calorie-conscious consumers through a fully-integrated marketing campaign.
The most important strategic product development to date from Barr is Irn-Bru
32. Created as a 'refreshing and delicious energy drink' in response to market
demand, Irn-Bru 32 is the first major extension to the Irn-Bru brand since the
launch of Diet Irn-Bru 26 years ago and represents a £3 million investment.
Utilising the main brand's secret ingredients but with the added intensity of
caffeine and taurine, the brand encourages 'Pure Mental Stimulation' and is the
first member of the Irn-Bru range to be introduced from launch at a UK-wide
level.
Strathmore Mineral Water
Strathmore, is the UK's leading 'produced bottled water brand' and manufactures
still, sparkling and flavoured spring water. All products are sold under the
Strathmore brand and the company recently launched a Spring fruits range (which
combines spring water and real fruit juice) and Strathmore Select (a premium
range of flavoured spring waters). The company is a strong player in all sectors
of the bottled water market and in all channels of distribution
This information is provided by RNS
The company news service from the London Stock Exchange
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