Japanese beverage giant Suntory is set to buy Frucor, the beverage subsidiary of French company Groupe Danone, based in New Zealand and Australia for more than $1bn.
Groupe Danone claims proceeds from the deal will be used to cut debt adding the transaction stems from the recent refocus on natural mineral water and spring water based beverages and will allow the company to focus on its core business growth opportunities. The transaction is subject to the approval by the New Zealand authorities.
Frucor has annual sales of around $400m, and is the leading energy-drink seller in Australasia. The company employs over 600 people throughout New Zealand and Australia and its brand portfolio includes fruit juices, fruit drinks, soft drinks, waters and energy drinks, including the popluar V brand.
Emmanuel Faber, co CEO of Groupe Danone says, “Frucor has played an instrumental role in Danone’s growth and innovation strategy over the past six years. We are convinced that this new step will allow Frucor to ensure its long term development within the beverages market.”
Suntory, which was founded in 1899 has an extensive product portfolio consisting of whisky, beer, wine, health foods and soft drink, with a turnover of $2.2bn. The company has been significantly increasing its global presence through strategic alliance and acquisition in beverage industry in US, Europe and Asia Pacific.
