AG Barr and Britvic have announced that afreement has been reached on an all share merger of their two businesses, with the new combined company named ‘Barr Britvic Soft Drinks plc’.
The merger will create a soft drink goliath in Europe with sales in excess of £1.5bn and a host of well-known brands, including Irn Bru, Fruit Shoot and J2O.
The move has been spurred by a desire to make efficiency savings in the operations of both firms as well as harnessing the complementary geographic strengths of both producers.
Ronald Hanna, A.G. BARR p.l.c. non-executive Chairman commented: "The new business will enjoy significant growth potential in all sectors of the market through diversified and enhanced routes to market and the potential of increased international exposure.”
Gerald Corbett, Britvic plc non-executive chairman added: "The combination makes huge commercial and industrial sense, bringing together a host of iconic brands from Robinsons Squash to IRN-BRU, as well as from the strong stable of Pepsi beverage brands, with very little overlap.”
Britvic shareholders will own 63% of the merged company with the remainder held by AG Barr shareholders.
The Leith Agency holds the ad account for IRN BRU with PR by Burt Greener whilst PHD Media handles media planning and buying. TBWA/Manchester also works with AG Barr on its own soft drink range.