USA: Triarc Completes Sale of Snapple Beverage Group to Cadbury Schweppes
The transaction includes the sale of Snapple Beverage Group's premium beverage business - Snapple®, Mistic® and Stewart's® - and soft drinks concentrates business - Royal Crown®, Diet Rite®, RC Edge(TM) and Nehi® - for approximately $910 million in cash plus the assumption of approximately $420 million of debt. In addition, payments of approximately $120 million will be made by Snapple Beverage Group with respect to employee options following the closing.
Approximately $450 million of the cash received was used to repay outstanding amounts under Snapple's existing credit facilities.
Nelson Peltz, Chairman and Chief Executive Officer of Triarc, said, "We have realized substantial value from our Snapple investment with its sale to Cadbury Schweppes. Taking into account the sale of Snapple, we will have a cash position in excess of $400 million and we will be nearly debt-free. We are carefully evaluating options for the use of our significant cash position, including acquisitions, share repurchases and investments, which we believe can further build shareholder value."
Peltz added, "Over the past few years, Mike Weinstein and his team have done an extraordinary job in turning around Snapple and building the Mistic, Stewart's and Royal Crown businesses. We wish the Snapple Beverage Group team all the best with Cadbury Schweppes and thank them for their many contributions to Triarc."
The operating results for Snapple Beverage Group prior to the sale will be classified as discontinued operations in Triarc's third quarter 2000 financial statements to be released in mid-November.
Triarc expects to record a pre-tax gain on the transaction in the fourth quarter in excess of $700 million (in excess of $400 million after taxes and other adjustments), or more than $16.00 per fully diluted share after taxes.
Triarc is a restaurant franchisor of Arby's® and T.J. Cinnamons®.
Cadbury-Schweppes has insisted that the disposal of its European soft drinks businesses is not indicative of a move away from soft drinks, but analysts see the group focusing increasingly on confectio...
Cadbury Schweppes has agreed to sell its European beverages business....
PepsiCo has refused to comment on reports linking the company with a bid for Cadbury Schweppes' soft drink business....
The European arm of drinks group Cadbury Schweppes is expected to be sold next month for around GBP1.1bn ($1.9bn), according to press reports....
UK-based soft drinks to sweets group Cadbury Schweppes has issued a trading update ahead of an investor seminar to be held in Dallas, Texas on 10 and 11 October....
Cadbury Schweppes is moving ever closer to selling off its European soft drinks business, according to German press reports....
Rumours are circling that Cadbury Schweppes' soft drinks business may be merged with Britvic....
Cadbury Schweppes Americas brand Mott's has announced a new line of fortified beverages....
- The end is nigh for Global Travel Retail - Comment
- Interview, Bulldog Gin founder Anshuman Vohra
- Five ways small brands can beat big players
- Pernod Ricard's Q1 results - Preview
- A Keeper of the Quaich writes - Editor's Viewpoint
- Diageo most at risk to Thai alcohol ban - analyst
- Constellation sells Canadian wine unit for US$761m
- Jobs at new India hub won't affect staff - Diageo
- Stumbling UK Pound prompts Conviviality price hike
- Pernod Ricard cheers US move to ease Cuban limits
- Global gin insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends