Home 170726 Refresco | indeed actions, not just words
170726 Refresco | indeed actions, not just words

170726 Refresco | indeed actions, not just words

 

No. pages 8
Description The announced acquisition of Cott's bottling activities mark a new phase in the company's "Buy & Build" strategy now significantly expanding its platform in North America. We see this as a positive step.
Contents
  • Cott largest deal ever for Refresco
  • Profitability of Cott stand-alone reasonable
  • Synergies will lift profitability ahead of Refresco stand-alone
  • EV/EBITDA 8.6x not light, but down to 6.2x when including synergies
  • A more diversified platform from channel, geographic and product segment perspectives
  • Strategic rationale for the deal; it all makes sense
  • Direct EPS enhancement, although ROCE increase will take time
  • Deleveraging ratio by 1.0x in 2 years is plausible
  • Patience required, but returns and valuation are attractive when deal is absorbed
Created Date: Wednesday July 26, 2017 09:54:18
Last Updated Date: Wednesday July 26, 2017 09:54:18
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