British sweets and soft drinks group Cadbury Schweppes has finally wrapped up a 700 million euro deal to buy France's Pernod Ricard soft drink brands business, which is headed by Orangina.
The long drawn out deal, for the Orangina, Pampryl, Champomy and Yoo-Hoo brand businesses in continental Europe, the US and Australia, won the approval of Pernod Ricard workers last month, allowing it to be finalised and sent to Brussesls for approval.
'Cadbury Schweppes and Pernod Ricard today confirmed that they have signed an agreement for the purchase of Pernod Ricard's soft drinks brands and businesses in Continental Europe, North America and Australia for 700 million euros,' the British company said in a statement. The deal remains subject to approval by EU and U.S. regulators.
Orangina's round bottle is a household icon in France. It will join Cadbury's Oasis, Canada Dry and Seven Up brands and will double Cadbury's share of the French soft drinks market to almost 19%.
Completion of the deal will now leave Pernod free to focus on its core spirits and wines businesses and will help the group cover $3.15 billion in debt it has taken on for the purchase of the Seagram's spririts business. Pernod teamed up with Britain's Diageo for the Seagram acquisition, which is awaiting US approval.
Pernod's soft drinks businesses had sales in 2000 of 466 million euros, with Orangina accounting for around half the total volume being acquired.
As a separate arrangement Pernod has an option to sell its soft drinks businesses in all other countries, representing around 5% of the French group's total soft drinks profits, to Cadbury Schweppes in the future for up to 35 million euros. Cadbury has also agreed to pay around 18 million euros to compensate Pernod for certain tax liabilities.
