- March 28, 2024
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Cott Corp. signed an agreement to acquire Cliffstar Corp., a Dunkirk, N.Y.-based beverage manufacturer, in a deal that could eventually be worth $569 million.
Cott will pay Cliffstar $500 million in cash up front, a release said, with $14 million in deferred money to be paid over the next three years. Additionally, Cliffstar may receive up to $55 million more based on its performance in the fiscal year ending Jan. 1, 2011.
The deal will entitle Cott to a $75 million tax deduction, the release said, resulting from the acquisition of Cliffstar's assets. And the companies expect to realize $20 million in annualized cost savings as well, due to economies of scale and administrative consolidation.
“Cliffstar is an ideal partner for Cott as we strengthen our position in private label beverages,” offered Cott CEO Jerry Fowden, who says the deal “expands Cott's product portfolio and manufacturing capabilities.”
The combined companies generated $2.3 billion in global revenues over the past 12 months.