This acquisition meets Cadbury Schweppes value creation criteria and is expected,
prior to goodwill amortisation and restructuring, to enhance EPS from the outset
and to cover the Group’s weighted cost of capital within three years.
John Sunderland, Cadbury Schweppes’ CEO, said, “The acquisition of
the Snapple Beverage Group will significantly expand Cadbury Schweppes’ position
in the US soft drinks market. It meets our strategic criteria of building robust
positions in existing markets and will be strongly value creating. It will substantially
increase our exposure to the profitable and high growth New Age beverage sector
and complements our leading position in flavoured carbonated soft drinks.
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