Refresco, one of the largest independent beverage contract manufacturers in the world, is set to be acquired by US private equity firm KKR.
KKR has agreed to buy a majority stake in Refresco from existing investors, PAI Partners and British Columbia Investment Management Corporation, who will maintain a “significant minority position”. The terms of the deal were not disclosed but PAI paid more than €1.6bn for Refresco in late 2017.
Rotterdam-headquartered Refresco supplies soft drinks for retailers and branded beverage companies in Europe and North America through its network of bottling, warehousing, logistics, and other operational assets. The company’s production platform includes over 70 majority-owned manufacturing sites in Europe, the US, Canada, and Mexico.
KKR stated that it will support Refresco as it expands its global footprint to better serve existing and new customers through a range of formats and channels. The company plans to build on its ability to manufacture products that meet the growing demand for sustainable beverages, with a focus on sourcing, responsible production and environmentally-friendly operations.
Hans Roelofs, CEO of Refresco, commented: “To support further growth, we have explored the various alternatives available to us and believe that the investment by KKR is an incredibly positive development for the company. Like our existing shareholders, KKR is supportive of our strategy and will bring operational expertise, access to capital and a well-established network to support us in our growth, innovation and M&A strategy.
“Our focus of growing alongside our customers, combined with expanding into new categories and geographies, remains unchanged. I look forward to this new chapter, and for all our employees and customers to capitalize on the opportunities ahead of us.”
James Cunningham, Partner at KKR, added: “Refresco has established itself as an industry leader supporting the global beverage industry with a blue-chip global customer base, an experienced and highly regarded management team, and an impressive network of assets that provides compelling value to customers. The Company also has a strong commitment to sustainability, which is an important differentiator for its customers.
“We look forward to leveraging our operational expertise from across the KKR platform to support the company’s continued growth and further advance the sustainability of its value chain.”
NAM Implications:
- Rivals and customers now need to anticipate the application of the PE playbook…
- …as the company becomes even more financially focused in its dealings.
- Watch this space…
