£1.4bn deal puts fizz back in Barr and Britvic

The on-again, off-again tie up between soft drink makers AG Barr and Britvic has finally been agreed. Irn-Bru flavour J2O anyone?

by Michael Northcott
Last Updated: 19 Aug 2013

The £1.4bn deal means that Britvic shareholders will own 63% of the combined firm while Barr’s will account for 37%. The firm will be known as Barr-Britvic and will have annual sales of £1.5bn, making it one of Europe’s largest soft drinks makers.  

In what sounds like an amicable merger compromise, its legal HQ will be at Barr’s offices in Cumbernauld, Fife, while operational HQ will be south of the border at Britvic’s base in Hemel Hempstead. Barr CEO Roger White will assume control of the enlarged firm while Britvic chairman Gerald Corbett will assume the same role in the new group.  

The deal is hoped to release some £35m of cost savings and an anticipated annual revenue growth of around £5m. The logic being that each firm has strengths in different markets and do not currently share distribution channels so there should be plenty of the fabled ‘synergies’ to exploit.  

But we can also expect to see around 500 jobs - out of a total of 4,000 - to be cut.  Britvic chairman Corbett said in a statement ‘ The merger will create a world class soft drinks company. AG Barr and Britvic are a fantastic fit with complementary strengths.’ 

We’ll raise a can of Dandelion & Burdock to that.   

Find this article useful?

Get more great articles like this in your inbox every lunchtime

Upcoming Events

Latest on MT

When will high street banks disappear?

When will high street banks disappear?

Branches are closing at an accelerating rate, but don't expect them to disappear entirely.

Burger chain Byron em-broiled in controversy after immigration raid

Burger chain Byron em-broiled in controversy after immigration raid

Reputational disasters can emerge out of thin air.

Apple still over-relies on the iPhone

Apple still over-relies on the iPhone

The tech giant's trying hard to diversify, but karaoke shows and Pokémon Go won't make up for dropping iPhone sales.

Will Mark Zuckerberg's mobile-first strategy make Facebook bigger than Google?

Will Mark Zuckerberg's mobile-first strategy make Facebook bigger than Google?

UPDATE: Facebook's mobile revenues increase 84% year on year. Does this give the social network the edge over Google?

5 things you didn't know about R&D tax credits

5 things you didn't know about R&D tax credits

Is your business innovating? You could claim back tax on fuel, staff and other costs.

Can you start your own business without quitting your day job?

Can you start your own business without quitting your day job?

Torn between the freedom of the start-up life and the security of the payroll? As a part-time entrepreneur you can have both.