FDBusiness.com

UK soft drinks group Britvic has acquired Empresa Brasileira de Bebidas e Alimentos (ebba), the leading supplier of liquid concentrates (dilutes) and the number two supplier of ready-to-drink (RTD) nectar drinks in Brazil for R$580 million (£120.8 million). The transaction provides Britvic with immediate access to the sixth largest soft drinks market and the largest concentrates market globally.

Britvic intends to accelerate growth in ebba by building on the existing strong platform and route to market by investing behind the ebba brand portfolio, extending existing brands into new sub-categories and introducing Britvic brands to the Brazilian market. Ebba reported net revenue of R$437.2 million and EBITDA of R$45.0 million in its 2014 financial statements.

The deal is in line with Britvic’s long-term sustainable growth strategy, a central pillar of which is to pursue international expansion by capitalising on global opportunities in the kids, family and adult categories, where Britvic has the leading brands in its core markets.

Simon Litherland, chief executive of Britvic, says: “The acquisition of ebba represents a unique opportunity to acquire a high quality business in a substantial soft drinks market, with exciting future growth potential. ebba operates in categories where Britvic has a proven capability of building new markets, accelerating innovation and establishing brand leadership. We have been in dialogue with ebba for some time and have completed a significant amount of due diligence in assessing the value and prospects of the business and the wider marketplace.”