Cott sells beverage manufacturing business to Refresco

TORONTO — Cott Corp. (TSX:BCB) has signed a deal to sell its traditional beverage manufacturing business to Dutch company Refresco for US$1.25 billion.

The Toronto-listed company’s Cott Beverages division is one of the world’s largest producers of drinks on behalf of retailers, brand owners and distributors.

Cott says the sale will help position it to better grow its water, coffee, tea and filtration businesses both organically and with acquisitions. Proceeds from the sale are expected to be used to help reduce debt.

Refresco is an independent bottler of soft drinks and fruit juices for retailers and brands with production in Europe and the United States.

The deal is expected to close in the second half of this year, subject to certain closing conditions including regulatory approval, Refresco shareholder approval, and working capital adjustments.