Cott to buy Cliffstar for $500 million
July 8, 2010
TORONTO — Cott Corp. has signed an agreement to acquire Cliffstar Corp., a privately held private label manufacturer of shelf-stable juices, for $500 million.
“As the clear leader in private label shelf-stable juices, Cliffstar is an ideal partner for Cott as we strengthen our position in private label beverages,” said Jerry Fowden, chief executive officer, Cott Corp. “A combination with Cliffstar expands growth prospects and improves our strategic platform for the future. Combined with Cliffstar, Cott will be a more diversified company with long-term advantages for our shareowners and retailer partners.”
In addition to the $500 million at signing, Cliffstar is entitled to $14 million of deferred consideration and additional contingent earnout consideration of up to $55 million.
“In Cott, we have found the right long-term strategic partner for Cliffstar,” said Stanley Star, chairman of the board and co-founder of Cliffstar. “Cott, like Cliffstar, has a long history of private label excellence and quality as well as close partnerships with its customers and suppliers. In addition to a strong position in juice and various new age growth segments, Cliffstar brings expertise in juice ingredients, processing and bottling that are complementary to Cott’s strengths in carbonated soft drinks. I believe the combination will be beneficial for Cliffstar’s employees, customers and suppliers into the future.”
The transaction is expected to close in the third quarter of 2010.