Cadbury Schweppes Americas Beverages will acquire the 55 percent of Dr Pepper/Seven Up Bottling Group it does not already own from investment partner The Carlyle Group and other investors. The $353 million acquisition is expected to result in cost and revenue synergies of $120 million by 2010, with half of that expected by 2008. The company says it will strengthen its route to market and give it more leverage with large retail customers. When complete, the bottling group will be known as Cadbury Schweppes Bottling Group.
In addition, CSAB will acquire All American Bottling Group, the third-largest independent bottling company in the United States, for approximately $65 million. The transaction is expected to close during the second quarter.