Britvic today (21 June) revealed it has turned down two takeover bids from Carlsberg Group in the space of two weeks.

Carlsberg’s latest proposal, sent on 11 June, amounted to an offer of around £3.2bn ($3.9bn) for the Robinsons squash maker, or 1,250 pence a share. The Danish brewer’s first bid, made on 6 June, stood at 1,200 pence a share.

The UK-based soft-drinks supplier said the second proposal still “significantly undervalues Britvic, and its current and future prospects”, according to a statement filed to the London Stock Exchange today (21 June).

In response, Carlsberg, one of the world’s largest brewers but with a portfolio that takes in soft drinks, said a deal would enable it to “capture appealing long-term growth opportunities from Britvic’s comprehensive portfolio of leading brands in an attractive segment of the beverage market where Carlsberg already has a strong track record”.

The Tuborg brewer added the acquisition would align with its growth strategy announced in February, which included plans to expand its portfolio outside of beer.

Carlsberg markets its own soft drinks, with brands including Tuborg Squash Light in Denmark, Tuborg Soda in Greece and Xixia in China.

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It is also the distributor of PepsiCo drinks in Norway and Switzerland. Britvic, meanwhile, handles PepsiCo’s beverages in the UK and Ireland.

“Carlsberg takes a disciplined approach to evaluating acquisition opportunities and will only proceed with a transaction that is strategically and financially attractive to Carlsberg and its shareholders. Any offer, if made, is likely to be solely in cash and is expected to be fully debt financed,” it said.

The second offer to buy Britvic represented an implied enterprise value multiple of over 13 times the Fruit Shoot maker’s adjusted EBITDA of £302m for the twelve-month period ended 31 March 2024, according to Carlsberg.

It also marked a premium of 29% to Britvic’s closing price on 19 June, which Carlsberg noted was the day prior to press speculation occurring.

Both parties said there is no certainty another offer will be made.

In Britvic’s first-half results for its fiscal 2024, the business booked a 10.9% rise in revenue to £880.3m ($1.11bn) for the six months to the end of March, helped by “price/mix” but the company did manage to also grow volumes.

The company also booked a 15.3% increase in EBIT (to £93.1m) and a 10.1% rise in profit after tax (to £59.9m).

In Britvic’s most recent full financial year, some 68% of its revenue came from its business in Great Britain. It also has operations in markets including France and Brazil.

Carlsberg’s business in the UK centres on its Carlsberg Marston’s Brewing Co. (CMBC) unit.

CMBC is a joint venture between Marston’s and Carlsberg UK, of which the Danish brewer owns a majority share.