DPSG said the deal is expected to complete in Q4

DPSG said the deal is expected to complete in Q4

Dr Pepper Snapple Group (DPSG) has agreed to buy east coast distributor Davis Beverage Group and bottling arm Davis Bottling Co for an undisclosed fee.

DPSG, whose brands are handled by Davis in eastern Pennsylvania and western and central New Jersey, said yesterday that the deal would strengthen its route to market. The proposed acquisition includes most of Davis’ direct store delivery territory in Pennsylvania as well as part of its New Jersey territory, and is expected to complete in the fourth quarter of the year.

“We’re excited about the possibility of building on (Davis') great heritage while nearly doubling our direct store-delivery footprint in Pennsylvania and adding their glass-bottling capabilities,” said DPSG's chief executive, Larry Young.

Davis, which is based in Bethlehem, Pennsylvania, also carries non-carbonated products, including third-party brands with DPSG distribution agreements such as Bai5, Fiji, Vita Coco and Neuro.

In Q2 results released in July, DPSG posted a big jump in half-year profits as sales edged up.