Britvic confirmed that following approval by the French Competition Authority in July, Britvic has now completed the sale of its juice assets in France to Refresco. The sale includes the three juice manufacturing sites, related private label juice business and the Fruité brand.
Britvic retains ownership of the Pressade and Fruit Shoot brands, which will be manufactured by Refresco as part of a long-term partnership arrangement. The transaction will not affect the Teisseire and Moulin De Valdonne brands or the private label syrups business, all of which are all manufactured at the company’s production site in Crolles.
This transaction supports our stated strategic priority to improve operating margins in our Western European markets, while also enables our teams to focus on growing our soft drinks portfolio of local favourite and global premium brands.
The Board of Britvic announced that it has entered into exclusive discussions with Refresco over the potential sale by Britvic of its three juice manufacturing sites in France, its related private label juice business, and the Fruité brand. The proposed sale is subject to a consultation process with the relevant employee representatives, which has now been initiated, and also subject to competition clearance by the French Competition Authority. Britvic will retain ownership of the Pressade and Fruit Shoot brands, which would be manufactured by Refresco as part of a long-term partner arrangement. The transaction will not affect the Teisseire and Moulin De Valdonne brands or the private label syrups business, which are all manufactured at the remaining site in Crolles.
The value of the transaction is not material and would result in a modest impact on adjusted EBIT. The transaction would be expected to complete in Spring 2020. The retained business would be smaller and higher margin, enabling the local management team to focus on building its branded business. An update will be provided at the Preliminary results announcement on 27 November 2019.
About Britvic Britvic is one of the leading branded soft drinks businesses in Europe. The company combines its own leading brand portfolio including Robinsons, Tango, J2O, Fruit Shoot, Teisseire and MiWadi with PepsiCo brands such as Pepsi, 7UP and Lipton Ice Tea which Britvic produces and sells in GB and Ireland under exclusive PepsiCo agreements. Britvic is the largest supplier of branded still soft drinks in Great Britain (“GB”) and the number two supplier of branded carbonated soft drinks in GB. Britvic is an industry leader in the island of Ireland with brands such as MiWadi and Ballygowan, in France with brands such as Teisseire and Pressade and in Brazil with Maguary and Dafruta. Britvic is growing its reach into other territories through franchising, export and licensing. Britvic’s management team has successfully developed the business through a clear strategy of organic growth and international expansion based on creating and building scale brands. Britvic is listed on the London Stock Exchange under the code BVIC and is a constituent of the FTSE 250 index.
Global bioscience company Chr. Hansen to expand and strengthen its research & development facilities north of Copenhagen to meet the increasing demand for natural and sustainable products.
Chr. Hansen has entered into a cooperation agreement with PensionDanmark on a significant expansion of its main office campus and research & development facilities in Hoersholm north of Copenhagen, while Catella Corporate Finance A/S has been financial advisor. The project includes the establishment of a modern innovation campus with laboratories for an additional 250 scientists.
The aim is to create future-proof facilities for research & development sustaining Chr. Hansen’s strong position as preferred supplier of natural ingredients and microbial solutions to the global food, health and agricultural industries.
In addition to the labs, a major new application center will be established where Chr. Hansen, together with customers from all over the world, can test and tailor-make new and innovative products in a realistic production environment.
“This is truly an exciting project for Chr. Hansen, who has been growing steadily over the past years” says CFO Soeren Westh Lonning. “With this investment we will ensure room for growth and innovation gearing ourselves for the future, which looks promising for a company that offers natural and sustainable solutions to some of world’s most important challenges such as reducing food waste, feeding a growing world population and reducing the use of chemicals.
A modern, flexible workplace with state-of-the-art labs in inspiring surroundings will help attract the talents we need to stay at the forefront and proceed on the sustainability journey. Moreover, it will contribute to strengthening our long-term position as a leading bioscience company,” he notes.
Financially strong partner with focus on social responsibility
Given the magnitude and strategic importance of the expansion to Chr. Hansen, it is critical to have a strong partner for the execution of the construction project. PensionDanmark, one of the 50 largest pension funds in Europe with currently EUR 31.5bn under management and serving 734,000 members, was found to be the best match.
“At Chr. Hansen we direct our efforts to what we do best, which is developing, producing and selling natural ingredients and microbial solutions. We have a constructive dialogue with PensionDanmark and feel confident about leaving the construction project to them,” states Lonning.
“We are proud that Chr. Hansen, who has been ranked as the world’s most sustainable company, has chosen us as their partner on this project. Over the past decades PensionDanmark has gathered solid experience as professional construction investor and co-developer on many large sustainable construction projects. This experience has given us the knowledge and competencies to execute special building projects together with our clients that meet their every demand,” says CEO Torben Möger Pedersen, PensionDanmark.
“We are a financially strong partner and we have a mutual interest in always keeping agreements on quality, on time and on budget. At the same time, it is important for us to demonstrate social responsibility and put demands on sub-contractors when it comes to ethics and sustainability in all processes, materials and working conditions. In this way we share the same values as Chr. Hansen,” Torben Möger Pedersen stresses.
In the middle of nature
The first ground will be broken next year, and the new buildings are expected to be finished late 2022.
The project focuses on making Chr. Hansen’s campus a modern and future-proof center for innovation, knowledge sharing and customer support, and an inspiring and efficient workplace for the employees, with better opportunity for cross functional teamwork. This is true for the many specialists that work there on a daily basis, as well as all the colleagues from other sites all over the world who visit Hoersholm.
In the architecture and layout of the new campus, it has been a priority to fully exploit the access to daylight and the surrounding green area in close interaction with nature, well in line with the fact that nature is the source of the company’s products.
Chr. Hansen moved to the location in Hoersholm in 1988 after more than 90 years at a downtown Copenhagen address. The company was established in 1874 and has more than 3,700 employees in over 30 countries. Every day more than one billion people consume a product that contains a natural Chr. Hansen ingredient.