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®.
Companies: Cadbury Schweppes
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