CS delays sale of US soft drinks business

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The sale of Cadbury-Schweppes US soft drinks arm has been delayed owing to volatile markets. (Getty Images)

Cadbury-Schweppes has announced it is indefinitely extending the timetable for the US$14.2 billion plus sale of its US beverages business, American Beverages, as volatile debt markets stopped some banks lending money to finance deals.

Cadbury Schweppes said its interest in American Beverages remains strong, but that it is delaying the sale in order to allow bidders to complete their proposals against a "more stable debt financing market."

The deadline for bids for the US drinks business was thought to be only one week away. Cadbury Schweppes announced in March this year that it was planning to separate its confectionery and Americas beverages businesses and confirmed in June that it would sell Americas Beverages.

Americas Beverages recently acquired the Southeast-Atlantic Beverage Corp (SEABEV), the second largest independent bottler in the US, from private shareholders, a move that made the drinks division even more appealing as a takeover bid.

Based in Jacksonville, Florida, SEABEV distributes much of Americas Beverages' portfolio, as well as licensed brands, throughout most of Florida and Northern Georgia. In 2006, SEABEV had revenues of US$172 million.

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