C&C Group Plc
14 May 2007
Sale of Soft drinks business for €249 million
Dublin, London, May 14, 2007: C&C Group plc ('C&C' or the 'Group'), a leading
manufacturer, marketer and distributor of branded beverages in Ireland and the
UK, today announced that it has entered into an agreement to sell its soft
drinks division and related assets (Republic of Ireland distribution
wholesaling) to Britvic plc ('Britvic') for a consideration of €249.2 million,
payable in cash upon completion. Subject to Competition Authority approval,
completion of the sale is expected to occur before 31 August 2007.
The Group's soft drinks division comprises some of Ireland's leading beverage
brands including Club soft drinks and Ballygowan bottled water. The division
also includes franchises within the Irish market for 7UP and Pepsi soft drinks.
For the year ended 28 February 2007, the Soft Drinks division and related
business generated revenue of €269.9 million while profits directly attributable
to the assets were €15.6million. Operating profits reported within C&C's
segmental analysis for the year ended 28 February 2007 (inclusive of central
costs) were €13.0m and a restatement showing the impact of the disposal is
attached. The gross assets of the Soft drinks and related businesses at 28
February 2007 amounted to €151m.
C&C intends to apply €150m of the proceeds to increase its previously announced
on-market share buy-back programme to €300m. The balance of the proceeds will be
used for general corporate purposes.
Maurice Pratt, Chief Executive of C&C, commented: "The Board of C&C is pleased
to announce its agreement to sell our soft drinks business to Britvic. The price
realised for the business recognises the value of its iconic brands and strong
position in the Irish beverage market. Following this disposal, the Group has a
sharper business focus and will continue to capitalise on the exciting growth
potential presented by our Cider and Spirits & Liqueurs brand portfolio."
Investors and analysts Financial adviser to C&C
Mark Kenny/Jonathan Neilan Basil Geoghegan
K Capital Source Goldman Sachs
Tel: +353 1 631 5500 Tel +44 207 774 4119
Email : c&cgroup@kcapitalsource.com Email: basil.geoghegan@gs.com
Irish Media International Media
Paddy Hughes Edward Orlebar
Drury Communications M Communications
Tel: +353 1 260 5000 Tel: +44 207 153 1523
Email: phughes@drurycom.com Email: orlebar@mcomgroup.com
About C&C Group plc
C&C Group plc is a leading manufacturer, marketer and distributor of branded
beverages in Ireland and the UK. C&C manufactures the leading Irish cider brand,
Bulmers, and the premium international cider brand, Magners, for export to the
United Kingdom, the United States and Continental Europe. C&C also exports
spirits and liqueurs, including the premium Irish whiskey brand, Tullamore Dew,
to over 80 international markets.
RESTATEMENT OF SEGMENTAL RESULTS FOR YEAR ENDED 28 FEBRUARY 2007
Continuing
Reported Disposals Operations
€m €m €m
Revenue
Cider 517.9 - 517.9
Spirits & Liqueurs 79.1 - 79.1
Soft Drinks 185.2 (185.2) -
Distribution 199.2 (84.7) 114.5
981.4 (269.9) 711.5
Operating Profit
Cider 178.9 178.9
Spirits & Liqueurs 17.7 17.7
Soft Drinks 15.3 (15.3) -
Distribution 0.7 2.3 3.0
Profit for continuing operations 212.6 (13.0) 199.6
Operating Profit %
Cider 34.5%
Spirits & Liqueurs 22.4%
Distribution 2.6%
28.1%
This information is provided by RNS
The company news service from the London Stock Exchange VARR
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