Refresco Gerber has agreed to acquire a bottling facility in Hamburg, Germany, from PepsiCo for an undisclosed amount, in a bid to strengthen its co-bottling activities.
The acquisition is in line with the company's 'buy and build strategy' and expected to further boost Refresco's operations in the country's soft drink and fruit juice market.
Refresco Gerber CEO Hans Roelofs said: "This transaction lies at the heart of our buy and build strategy and confirms our focus on expanding our co-packing business.
"It further strengthens our relationship with one of our key customers PepsiCo, for whom we already provide co-packing activities in France, Spain, Benelux and the UK.
"Germany is an important region for Refresco Gerber and with this acquisition, we take an important leap forward in our German co-packing activities and further improve our market presence."
Subject to the approval of German competition authorities, the deal is expected to be completed in the second quarter of this year.
Under the terms of the deal, Refresco Gerber will have a ten-year co-packing agreement in Germany with PepsiCo, which offers brands such as Pepsi, Punica and Lipton in the European market.
Last year, Refresco Gerber announced plans to sell around 50% of the company through an initial public offering. The IPO would value its equity at $1.13bn to $1.37bn, reported Reuters earlier.
Netherlands-based Refresco Gerber has soft drinks and fruit juices bottling operations in the Benelux, France, Germany, Iberia, Italy, the UK, Poland and Finland.
Image: Refresco Gerber is a bottler of soft drinks and fruit juices. Photo: courtesy of Refresco Gerber.