“The combination would have compelling industrial logic and represents an opportunity for both companies to enhance their industry position and achieve significant synergies and shareholder value. The statement said: “A merger would create one of the leading soft drinks companies in Europe, with a strong portfolio of market leading brands. In a joint statement, Britvic and AG Barr confirmed they were in talks which may or may not lead to a merger. The site has produced locally sourced Pennine Spring water since it first opened in 1871. The group, which has operations in Europe and the USA, invested £1.4m last year in its Birkby plant to increase production and introduce the Juicy Drench drink to the manufacturing lines. In its most recent trading update, Britvic reported a 6.9% fall in sales for the three months to July 8 after a recall of its Fruit Shoot and Fruit Shoot Hydro packs and the impact of poor weather which dented group revenues. The business has won praise from City analysts for its performance after increasing sales of Irn-Bru away from its historical heartland. He remains on the company’s board as a non-executive director and is one of just three people to know the formula of 32 ingredients used in the drink. Shares in both companies fizzed yesterday – giving Britvic a valuation of about £890m and AG Barr a value of about £500m.ĪG Barr and Britvic have also agreed the make-up of the board of directors if a merger goes ahead.ĪG Barr, based at Cumbernauld, North Lanarkshire, has produced Irn-Bru from a secret recipe for more than 130 years.Ĭhairmanship of the company passed outside the family for the first time in 2009 when Robin Barr ended his 31-year tenure as chairman. Irn-Bru said it had already been agreed that Britvic shareholders will own 63% of any merged company.
It also has agreements to sell PepsiCo brands such as Pepsi, 7UP and Mountain Dew Energy. Scottish-based AG Barr, which dates back to 1875 and also makes Tizer and Rubicon, said the discussions were at an early stage after making the approach to its Essex-based rival.īritvic’s Birkby site produces bottled water under the Drench and Pennine Spring labels.īritvic’s other brands include Tango, Robinsons, J20 and Fruit Shoot. THE owner of a bottled water business in Huddersfield is in talks over a £1.4bn merger to create one of Europe’s biggest soft drinks giants.īritvic, which includes the former Ben Shaws site at Willow Lane, Birkby, is in talks with Irn-Bru maker AG Barr over a possible tie-up.
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