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Brooks Beverage Transaction
Brooks Beverage approached Bottlers regarding a business
combination shortly after the G&K financing fell through. Brooks
Beverage was interested in combining with Bottlers for several
reasons. Brooks Beverage wanted to consolidate its position as a
large independent bottler. It also preferred that Bottlers not
be sold piecemeal to Coke or Pepsi, which might fragment the
independent bottling network further. In addition, unbeknownst
to Bottlers, Cadbury had already approved Brooks Beverage’s
proposed combination with Bottlers. Combining the companies made
logistical sense as well because Bottlers served a different
geographic region than Brooks Beverage, and Brooks Beverage,
therefore, could reach a larger geographic region by combining
with Bottlers. Moreover, Bottlers was the third largest
independent bottling company in the country, and Brooks Beverage
was the second. The two companies, when combined, would offer
synergies and economies of scale and would help fortify the
entire independent bottling industry. Bottlers agreed to the
proposed transaction.
Brooks Beverage acquired all the stock of Bottlers for $48.5
million in 1995. The resulting new company was called Beverage
America, Inc. (BevAm) (now ABC Beverage Corp.). The management
group received stock in BevAm and accepted executive positions
with BevAm in the transaction.
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Last modified: May 25, 2011