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Highland Spring CEO Les Montgomery and Merlyn Gregory of due diligence provider Calash
of over 400MW – equivalent to some £600 December and has an option to increase 2.2 per cent a drop in volume in the UK
million of investment. Construction of the its shareholding to 100 per cent this year. soft drinks market, according to Nielsen
site is expected to begin later this year, Although the terms of the transaction have Scantrack data to January 2009.
featuring 20 turbines with a capacity to not been revealed, the company said the In March, the Cumbernauld-based
generate 60MW that will provide energy deal was funded through debt. The new unit business reported strong preliminary results
to Argyll and Bute. created through the deal is expected to for the year ended January 2009, posting a
Cormie believes he has a strong boost sales by $50 million (£34 million) 9.7 per cent increase on pre-tax profits to
proposition for the banks: “While values this year. £23.4 million on a turnover of £169.7
million, also up at 14.4 per cent. By
“There is a sense of loyalty among consumers for British
increasing its final dividend by 7.7 per cent
to 42p, AG Barr was somewhat of a
products and the perception is that Scottish Water is the best” corporate rarity.
In spite of these financial highlights, AG
Les Montgomery
Barr’s Strathmore Spring brand took a
hammering as demand softened for premium
have come off a little, renewables is one of DRINKING IN DEALS drinks, particularly water, smoothies and
the sectors that has held up.” A closer look at the local manufacturing top-end juices last year. UK water market
Other deals within this sector of an sector suggests that the Scots are a nation of volumes fell by ten per cent as a result of
international nature include France-based bon vivants as the largest contribution to bad weather and consumers tightening their
Carbone Lorraine’s acquisition of Scotland- manufacturing GVA in Scotland comes belts. Additionally, environmental
based Calcarb, the second largest from the food and drink sector – totalling considerations, such as the sustainability
manufacturer of rigid graphite felt for the more than £3 billion in 2006, according to of bottled water added to the brand’s woes.
solar industry. The Bellshill business was the latest figures from Scottish Enterprise.
bought as a bolt-on to complement Carbone In fact, the nation’s food and drink DISTRESSED DEALS
Lorraine’s graphite services for solar, manufacturing industry generates annual In the short term, falling demand for
industrial, semiconductor and high sales of some £7.4 billion and employs a bottled water has led to struggling
temperature furnace components, the fifth of Scotland’s manufacturing employees. businesses driving M&A in this space.
company said in a press statement. Soft drinks manufacturer and maker of A case in point is Highland Spring’s
Carbone Lorraine, which has 6,800 Irn Bru, Tizer and Orangina AG Barr acquisition of Speyside Glenlivit Water
employees worldwide, bought a 60 per cent outperformed the market last year, raking in Company in March.
stake in the Scottish manufacturer in profits and increasing its dividend despite a Speyside collapsed into administration to
Mergers & Acquisitions 37
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