Offer for Cadbury Schweppes Europe Beverages

Cadbury Schweppes has announced that it has received a binding offer from a consortium acting on behalf of the funds managed by Blackstone Group International and Lion Capital LLP to buy the Group's Europe Beverages business for £1.27 billion in cash, representing approximately 9.5 times Europe Beverages' forecast 2005 underlying EBITDA. 

Europe Beverages' principal products are carbonated soft drinks, mineral waters and still drinks.  Its main brands are Schweppes, Orangina, TriNa, Oasis and La Casera which account for around 75% of sales. Other brands include Apollinaris, Pampryl, Gini and Vida.  Products are sold across Continental Europe, with some sales in the UK, parts of North and West Africa and the Middle East.  Sales are concentrated in three countries, France, Spain and Germany, which account for around 85% of total sales.

The business has wholly owned bottling operations in Germany, Spain, Portugal and Belgium and a production arrangement with San Benedetto in France. In other countries, the business operates through licence agreements with third party manufacturers and distributors. The business has around 3,000 employees.

Todd Stitzer, CEO of Cadbury Schweppes said:  "I'm delighted that within such a short time we have achieved a firm offer for Europe Beverages at a price which reflects the quality of its brands and the strength of its management team. Following completion of a deal, we will be able to focus on our faster growing confectionery and other beverage businesses."