FDBusiness.com

Netherlands-based Refresco, Europe’s leading manufacturer of private label soft drinks and fruit juices, is to acquire Soft Drinks International, a German producer of soft drinks and water, for an undisclosed price. SDI is a strong, regional producer, primarily active in the German market and the Benelux, with production facilities in Erfstadt (Germany) and Heerlen (The Netherlands). SDI’s products are also exported to other European countries.

SDI focuses solely on the private label segment. Turnover in 2009 was Eur140m and production was approximately 1b units. The deal is expected to be completed within several months.

The acquisition is in line with Refresco’s ‘buy and build’ strategy, which is focused on further strengthening and expanding the company’s leading position in non-alcoholic beverages in Europe. The takeover signifies an important step for Refresco in the growing German market for carbonated soft drinks (CSDs). It allows Refresco to further expand its product range – which in Germany currently consists primarily of fruit juices – with CSDs. The deal will transform Refresco Germany, which had a turnover of over Eur240m in 2009, into a full service provider of non-alcoholic beverages.

In addition, the acquisition allows Refresco to integrate the activities of SDI into its existing organisation and consequently further optimise its production processes and improve its competitive position to become one of the top three biggest manufacturers of soft drinks and fruit juices in Germany. Furthermore it will reinforce Refresco’s position in the growing private label market.

Established in 2000, Refresco currently operates 19 production sites in eight countries across Europe and employs more than 2,200 people. In 2009, Refresco achieved a turnover of Eur1.14b.