Cott Corporation’s UK/Europe business unit has purchased all subsidiary companies of Aimia Foods in a $133m deal.The acquisition price includes the payment of nearly $80m at closing plus an adjustment for working capital, $33m in deferred consideration payable in September 2014, and on-target earnout consideration of $20m, with a minimum earnout consideration of $13m and a maximum earnout consideration of $27m.
Cott said that the purchase price will be funded through cash on hand and borrowings under its asset based lending facility.
Cott chief executive officer Jerry Fowden said that the Aimia Foods acquisition accelerates the diversification strategy, bringing a strong hot and cold beverage platform and multiple foodservice relationships into the company's portfolio.
"Aimia has extensive expertise in new product categories, packaging formats and trade channels, such as the packaging of powdered beverages, which we believe enhances the diversification opportunities available to the combined businesses," Fowden added.