Barr and Britvic have finally agreed the terms of their deal

Barr and Britvic have finally agreed the terms of their deal

AG Barr and Britvic have agreed on the details of an all-share merger, which will create one of Europe's largest soft drinks makers.

The new company, to be called Barr Britvic Soft Drinks, is expected to have an annual turnover of around GBP1.5bn (US$2.4bn), the companies announced today (14 November). The deal remains subject to shareholder and regulatory approval. 

Plans for the merger were first announced in September, but faced delays after the companies requested more time from the UK's Takeover Panel.

The merged entity will have a market capitalisation of around GBP1.4bn. Barr is valued at GBP519m, while Britvic is worth GBP921m. 

Its legal headquarters will be Barr's existing head office in Cumbernauld, Scotland, which will also remain its registered office, while the new group's operational HQ will be at Britvic's head offices in Hemel Hempstead, Hertfordshire. 

The companies said that PepsiCo, which Britvic has exclusive bottling and distribuiton agreements with, is "supportive" of the deal. Britvic and Pepsico have agreed variations to their contractual terms, while the US firm has will not exercise any rights of termination it may have as a result of the merger siuation. 

Roger White, Barr's current boss, will be the new entity's CEO. Britvic's CFO John Gibney will take the same role in the new group. 

Meanwhile, Gerald Corbett, Britvic's non-executive chairman, will take that role for Barr Britvic Soft Drinks. Barr's current chairman, Ronald Hanna, will become the non-exec deputy chairman of the new company. 

Hanna said: "This is a unique opportunity to create long term value for both sets of shareholders through sustainable profitable growth, underpinned by significant synergy benefits." 

The group's board will include six more non-exec directors - three from Barr and three from Britvic. 

The company's brand portfolio will include: Irn-Bru, Robinsons, Fruit Shoot, J2O and Rubicon.

To see just-drinks' full coverage of AG Barr and Britvic's proposed merger, click here.