Cott Completes Cliffstar Acquisition

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August 18, 2010

Soft-drink company, Cott Corp. completed its previously announced acquisition of private-label juice maker Cliffstar Corp. and its affiliated companies for $500 million in cash.

Cliffstar is eligible for additional payouts of up to $55 million, depending on its performance this year and the completion of certain expansion projects. It also could receive $14 million in deferred consideration over a three-year period, according to a Cott statement.

"This combination is a strategic investment in the future as it makes Cott a more balanced and diversified private label supplier with a much broader product portfolio, a manufacturing infrastructure that is second to none in private label and improved growth prospects,” said Jerry Fowden, CEO of Cott.

Cott financed the acquisition through the closing of its previously announced private placement offering of up to $375 million in aggregate principal amount of 8.125% senior notes due 2018 and underwritten public offering of 13,340,000 at a price of $5.60 per share. Cott financed the remainder of the purchase price through debt.

The Cliffstar transaction makes Cott the world’s largest private label beverage company. With approximately 4,000 employees, Cott now operates soft drink, juice, water and other beverage bottling facilities in the United States, Canada, the United Kingdom and Mexico, and sells its beverages in more than 50 countries worldwide.

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