Coca-Cola swallows drinks maker Rio

By SIMON HENDERY

Drinks maker Rio Beverages has been sold to Australian-based Coca-Cola Amatil and US giant The Coca-Cola Company for $40 million.

Rio was jointly owned by the Thexton Family Trust and Cerebos Gregg's (a subsidiary of Singapore-listed Cerebos Pacific).

Its range of drinks includes Rio Gold, Keri and Thextons fruit juice, e2 and Ikon energy drinks, and Kiwi Blue mineral water.

The company has bottling plants in Auckland and Christchurch and employs about 220 staff.

The Coca-Cola Company will acquire Rio's trademarks and intellectual property, which will be authorised for use by Coca-Cola Amatil New Zealand, a wholly owned subsidiary of Coca-Cola Amatil.

Coca-Cola Amatil NZ will acquire Rio's other assets, including the bottling plants, cold drink equipment and distribution assets.

Coca-Cola and and Amatil NZ said the acquisition was consistent with their desire to sell a broader range of beverages in New Zealand. Coca-Cola owns about 35 per cent of Amatil.

The company said the acquisition cost represented a multiple of between seven and eight times forecast earnings before interest and tax for this year.

Coca-Cola Amatil NZ employs about 750 staff and has plants in Auckland, Putaruru and Christchurch.

As well as having the New Zealand rights to Coca-Cola brands, it manufactures and distributes Pump, Deep Spring, L&P and Bubbly.