Carlsberg Agrees £3.3bn Deal to Acquire Britvic

Danish brewing giant Carlsberg has reached an all-cash agreement to acquire Britvic (LON: BVIC), a leading soft drinks manufacturer in the UK, for £3.3 billion.

The deal will be implemented through a court-sanctioned scheme of arrangement and is subject to Britvic shareholder and regulatory approval.

Under the terms of the agreement, Britvic shareholders will receive 1,315p per share, which represents a 36% premium to the closing share price on June 19, 2024, the day before speculation about a possible offer began. It will be comprised of 1,290p for each Britvic share and a special dividend payment of 25p per Britvic share.

Carlsberg believes the acquisition is a highly attractive opportunity that will support its overall growth ambitions. The combined company, to be named Carlsberg Britvic, will have a strong portfolio of beer and soft drinks brands across the UK and Western Europe.

“With this transaction, we are combining Britvic's high-quality soft drinks portfolio with Carlsberg's strong beer portfolio and route-to-market capabilities, creating an enhanced proposition across the UK and markets in Western Europe,” said Jacob Aarup-Andersen, CEO of Carlsberg.

Carlsberg also expects to achieve £100 million in annual cost savings and efficiency improvements within five years of the acquisition's completion.

Britvic's board of directors has unanimously recommended the offer to shareholders, highlighting the transaction's strategic merits and the certainty of an attractive cash consideration.

“The Board of Directors believe that the strategic merits of this offer are compelling, and the offer also provides shareholders with the opportunity to receive the certainty of cash consideration that reflects the current strength and medium-term prospects of the Britvic business,” said  Ian Durant, Non-Executive Chair of Britvic.

The deal is expected to close in the first quarter of 2025.

Carlsberg also announced that PepsiCo has agreed to waive the change of control clause in Britvic's bottling arrangements. In addition, Carlsberg has agreed certain terms in respect of bottling arrangements for Britvic. As a result, following completion Carlsberg is expected to become the largest PepsiCo bottling partner in Europe.

Furthermore, Carlsberg separately agreed to acquire Marston's PLC's minority stake in Carlsberg Marston's Limited.