Britvic continues its Brazilian shopping spree
Britvic is pressing on with acquisitions in South America with the purchase of a juice business in Brazil.
The UK drinks company, known for brands such as 7up , Pepsi Max and Lipton Ice Tea, announced today that it will be buying Brazilian company Bela Ischia for BRL218m (£54m).
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Britvic's latest Brazilian buyout comes after it took over soft drinks company Ebba in September 2015, which produces concentrate drinks Maguary and Dafruta. Britvic said this year it will build on its "strong first year in Brazil".
The deal for Bela Ischia, which has been agreed in principle, is expected to complete by the end of March this year.
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The motivation behind Britvic's decision to purchase Bela Ischia was partly geographical. Bela Ischia is particularly well-loved in Rio de Janeiro, while the Ebba brands are favoured in Sao Paulo and the north east. In addition, Bela Ischia recorded strong growth over the past year.
Simon Litherland, chief executive of Britvic, said the acquisition was an "exciting opportunity" for the company, which is looking to muscle in on Brazil's concentrates market – the largest in the world.
"Bela Ischia operates in a category where Britvic has proven capability of generating growth, launching new products and establishing brand leadership and is an excellent complementary fit with our existing business," he said.