Britvic and AG Barr Hold Merger Talks
UK soft drinks groups Britvic and AG Barr are in preliminary discussions about a possible merger. A merger would create one of the leading soft drinks companies in Europe, with a strong portfolio of market leading brands. The combination would have compelling industrial logic and represents an opportunity for both companies to enhance their industry position, and achieve significant synergies and shareholder value.
Discussions are at an early stage but agreement has been reached with respect to certain key aspects of a merger. It is agreed that Britvic shareholders would own 63% and AG Barr shareholders 37% of the enlarged group’s share capital.
The board of directors of the enlarged business would be drawn equally from the boards of both companies. Roger White, CEO of AG Barr, would become CEO of the combined group and John Gibney, CFO of Britvic, would become CFO. Gerald Corbett, Chairman of Britvic, would become Chairman the combined group, and Ronnie Hanna, Chairman of AG Barr, would become Deputy Chairman. In addition, the new board would comprise six other non-executive directors, three nominated from each of Britvic and AG Barr.
