Dr Pepper Snapple Seeks Acquisition of Davis Beverage Group and Davis Bottling Co. Business
Move would nearly double DPS's company-owned distribution in
Pennsylvania, add glass package manufacturing capabilities
PLANO, Texas--(BUSINESS WIRE)--
Dr Pepper Snapple Group (NYSE: DPS) has signed a non-binding letter of
intent to acquire the business assets of Davis Beverage Group and Davis
Bottling Co. If completed, the acquisition would include most of Davis'
direct store delivery territory in Pennsylvania and a portion of its New
Jersey territory as well as its production and distribution facilities,
delivery vehicles, vending equipment and other assets.
Based in Bethlehem, Pa., Davis Beverage Group distributes a wide range
of DPS's brands - including 7UP, Snapple, A&W, Canada Dry and Sunkist,
among others - to a 42-county territory covering most of the Eastern
half of Pennsylvania, excluding the Philadelphia area, and Western and
Central New Jersey. Davis also carries a number of other non-carbonated
products, including several third-party brands that already have
significant distribution agreements with DPS: Bai5, FIJI, Vita Coco and
In addition to bottling carbonated soft drinks in a wide range of PET
package sizes, Davis Bottling Co. currently produces IBC, Stewarts and
Crush in glass bottles and Orangina in 1.75 liter PET for DPS on a
Larry Young, president and CEO of DPS, said the proposed acquisition
would build on the company's efforts to strengthen its route to market,
improve operating efficiency and leverage its integrated business model.
"Davis has proudly served customers and consumers for more than 70 years
and been a great partner to us both as a distributor of our brands and
as a contract manufacturer," said Young. "We're excited about the
possibility of building on their great heritage while nearly doubling
our direct store delivery footprint in Pennsylvania and adding their
glass bottling capabilities."
DPS and Davis have begun due diligence and hope to complete the sale in
the fourth quarter of this year. The financial terms of the transaction
will not be disclosed; however, any final agreement will not have a
material impact to DPS's financial statements.
About Dr Pepper Snapple Group
Dr Pepper Snapple Group (NYSE: DPS) is a leading producer of flavored
beverages in North America and the Caribbean. Our success is fueled by
more than 50 brands that are synonymous with refreshment, fun and
flavor. We have 6 of the top 10 non-cola soft drinks, and 13 of our 14
leading brands are No. 1 or No. 2 in their flavor categories. In
addition to our flagship Dr Pepper and Snapple brands, our portfolio
includes 7UP, A&W, Canada Dry, Clamato, Crush, Hawaiian Punch, Mott's,
Mr & Mrs T mixers, Peñafiel, Rose's, Schweppes, Squirt and Sunkist soda.
To learn more about our iconic brands and Plano, Texas-based company,
please visit DrPepperSnapple.com.
For our latest news and updates, follow us at Facebook.com/DrPepperSnapple
Dr Pepper Snapple Group
Source: Dr Pepper Snapple Group
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