New York-based investment firm KKR announced today it has entered an agreement to acquire a majority stake in Refresco Group B.V., one of the largest independent beverage contract manufacturers worldwide. Terms of the deal were not disclosed.
According to the companies, the majority stake will be acquired from Refresco’s existing stakeholders, French investment firm PAI Partners and Canadian group British Columbia Investment Management Corporation (BCI), but they will retain “significant” minority positions in the company.
The deal values the bottler at around $7.9 billion (or 7 billion euros), according to Bloomberg, and “marks a rare example” of KKR using its global infrastructure fund to invest in a consumer company. The report noted that Swiss investment firm Jacobs Holding AG had been considered a frontrunner to acquire the majority stake in Refresco, but was ultimately outbid by KKR in a “hotly-contested auction that ended early Tuesday.”
“Refresco has established itself as an industry leader supporting the global beverage industry with a blue-chip global customer base, an experienced and highly regarded management team, and an impressive network of assets that provides compelling value to customers,” said KKR partner James Cunningham in a press release. “The Company also has a strong commitment to sustainability, which is an important differentiator for its customers. We look forward to leveraging our operational expertise from across the KKR platform to support the Company’s continued growth and further advance the sustainability of its value chain.”
Founded in 1999, Netherlands-based Refresco provides bottling and beverage solutions for retailers and brands across North America and Europe. The company currently operates over 70 manufacturing sites across the two continents, claims over 10,000 employees and also offers material planning, procurement, warehousing, fulfillment and distribution services.
The acquisition comes as Refresco seeks to expand its global footprint and services, according to the release, with plans to focus on innovation and M&A opportunities.
“We are very pleased to welcome KKR, one of the world’s most prominent investment firms, as our new majority owner,” said Refresco CEO Hans Roelofs in the release. “To support further growth, we have explored the various alternatives available to us and believe that the investment by KKR is an incredibly positive development for the Company.
“Like our existing shareholders, KKR is supportive of our strategy and will bring operational expertise, access to capital and a well-established network to support us in our growth, innovation and M&A strategy. Our focus of growing alongside our customers, combined with expanding into new categories and geographies, remains unchanged. I look forward to this new chapter, and for all our employees and customers to capitalize on the opportunities ahead of us.”
PAI Partners and BCI initially acquired Refresco through a consortium in 2017, which valued the bottler at about 3.3 billion euros. At the time, the firms said they supported Refresco’s buy-and-build strategy to grow the company. Most recently, Refresco purchased three U.S. production facilities from The Coca-Cola Company in Texas, Michigan and Missouri.
“We are proud to have been instrumental in Refresco’s growth since we initiated our investment with BCI in 2018,” said PAI managing partner Frédéric Stévenin in a statement. “We are even more excited about the prospect of continuing to stay a part of Refresco’s strong growth trajectory alongside KKR. We are convinced of Refresco’s unique value-add capabilities, its growth initiatives and a proven M&A track record, and we look forward to the next phase of this journey.”
KKR and Refresco did not immediately respond to a request for comment.