The Netherlands' Refresco, the world's largest independent bottler for retailers and A-brands in Europe and North America, said it has entered into an agreement with Coca-Cola Co. to acquire three of Coke's production locations in the United States. Terms of the deal were not disclosed. Refresco will finance the transaction from its existing cash position.
The three production facilities are located in Truesdale, MO, Waco, TX, and Paw Paw, MI. The transaction involves long-term agreements for contract manufacturing activities. Following the acquisitions, Refresco will become one of Coca-Cola’s strategic third-party U.S. contract manufacturers.
Refresco said the acquisition is aligned with its "buy-and-build" strategy, focused on expanding its manufacturing footprint in Europe and North America to service both retailers and A-brands.
In other news, Refresco Group BV published on Aug. 5 its second-quarter and half-year 2021 results.
Q2 KEY POINTS
- Total volume was 3,204 million liters, compared with 2,983 million liters for same 2020 period.
- Gross profit margin was €531 million, compared with €477 million for the same period a year ago..
- Adjusted EBITDA amounted to €159 million, compared with €138 million in 2020's second quarter.
- Cash and cash equivalents at the end of Q2 2021 were €504 million, compared with €314 million for the period ended June 30, 2020.
- Refresco acquired HANSA-HEEMANN, a major German mineral water and CSD company, on July 8, 2021.
