Cott acquires Aimia Foods for $80m

Cott, a Canada-based supplier of private label carbonated soft drinks, has announced that its UK/Europe business unit has acquired all subsidiary companies of Aimia Foods, for around $80m.

Aimia Foods, a privately owned business with headquarters in Merseyside, UK, is involved in the manufacturing, sale and marketing of Aimia-owned and third-party licensed beverage brands across all sectors of the UK market, including foodservice, vending, cash and carry, and retail.

The company reported revenues of around $110m for the twelve months ending 31 March 2014.

The acquisition is in line with Cott’s diversification strategy, and will bring a strong hot and cold beverage platform and multiple foodservice relationships into the portfolio.

Cott plans to fund the deal through cash on hand and borrowings under Cott’s asset based lending facility.

Cott CEO Jerry Fowden said that Aimia has extensive expertise in new product categories, packaging formats and trade channels, which the company believes enhances the diversification opportunities available to the combined businesses.

"Aimia has been highly successful in maintaining strong relationships with leading brand-owners and outsourcing partners, and we look forward to continuing to build these relationships under Aimia’s current leadership team," Fowden added.

Aimia Foods managing director Rob Unsworth said: "We firmly believe that bringing Aimia Foods into the Cott family will provide additional opportunities for the benefit of our employees and customers alike."

According to Cott, the acquisition enhances its product diversification, channel diversification and packaging abilities.

Approximately 85% of Aimia’s revenues are attributable to categories new to Cott, including hot chocolate, coffee, malt drinks, creamers/whiteners and cereals.

Aimia has a strong presence outside large format retail and supermarket stores, with nearly 40% of revenues in the wholesale, vending and foodservice channels and 35% of revenues from contract manufacturing.

In addition, the company offers new packaging formats including pouches, jars, sticks, in-cup products, sachets and block-bottom bags.