Britvic and AG Barr agree to merge as Barr Britvic

Robinson's owner Britvic and Irn Bru maker AG Barr have reached an agreement on a merger that will create a soft drinks company called Barr Britvic Soft Drinks, which will have annual sales of more than £1.5bn.

Irn-Bru: owner AG Barr merges with Britvic
Irn-Bru: owner AG Barr merges with Britvic

The agreement includes the approval of Pepsi, which Britvic has exclusive bottling and distribution agreements with in the UK.

Pepsi and Britvic have agreed "certain variations" to the terms of this contract, and Pepsi has agreed not to terminate the contract, which it had the right to do as a consequence of the merger.

Barr Britvic’s operational headquarters are proposed to be at Britvic's existing head office at Hemel Hempstead.

The merger needs clearance from each company’s shareholders as well as the Office of Fair Trading, and the deal is expected to complete in February 2013. Management will be led by the current AG Barr CEO Roger White, as chief executive.

The two companies expect to achieve recurring annual cost synergies of approximately £35m through overhead savings, procurement savings and supply chain enhancements.

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.


Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

1 PHD and ITV storm Media Week Awards

PHD reigned supreme at the 2016 Media Week Awards, after winning media agency of the year and the coveted Grand Prix for its work for Sainsbury's Christmas campaign, while ITV won sales team of the year.

Just published