Posts with tag CSG
Posted Sep 14th 2007 1:14PM by Maura McCormack
Filed under: The Blackstone Group, KKR
KKR and
Blackstone can't get a financing break, for all their cash. According to the
Financial Times,
Cadbury Schweppes (NYSE:
CSG) has turned down another private equity offer for its drinks division.
The consortium included not just KKR and Blackstone, but Lion Capital as well. The board reportedly rejected the deal due to unfavorable financing conditions.
You can't say the big boys aren't out there trying!
Posted Aug 22nd 2007 4:00PM by Paul Foster
Filed under: Rumors
Hershey Co. (NYSE: HSY) -- calls active on renewed Cadbury Schweppes (NYSE: CSG) chatter and Deutsche Bank report. HSY is recently up $1.26 to $46.43. CSG, the world's largest confectionery company, is in the process of an auction of its U.S. soft-drink business. The sale could net CSG as much as $16 billion, some of which the company is expected to retain to fund an expansion of its confectionery business. Tootsie Roll Industries Inc. (NYSE: TR) and HSY have been frequently mentioned as CSG buyout candidates. CSG has U.S. licensing agreements with HSY. DBAB says this about HSY: "given the weak fundamentals, we believe the Trust may now be reconsidering its position on a sale. Assuming 13x 2008E EBITDA, a bid could equal at least $55 a share." HSY call option volume of 8,849 contracts compares to put volume of 2,561 contracts. HSY September option implied volatility of 26 is above its 26-week average of 20 according to Track Data, suggesting larger risk.
Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Jul 5th 2007 12:00PM by Zac Bissonnette
Filed under: Deals, Rumors, Coca-Cola (KO), Financials and analyticals, Value and lack thereof
Fresh off its acquisition of Vitamin Water, Coca Cola (NYSE: KO) is looking into buying the Snapple brand, a maker of iced tea and other non-carbonated beverages. The owner of Snapple, Cadbury Schweppes (NYSE: CSG), is splitting itself into two companies at the urging of super-investor Nelson Peltz. It is reportedly in talks with several private equity firms about selling Snapple, and Coke has said it's interested. Spokesman Dana Bolden said that "We're always looking at whether to build or buy", and indicated that the company would also consider developing its own brand in the same category if it doesn't buy Snapple.
An acquisition of Snapple would look like a step down from the Vitamin Water deal, unless it can be had at a great price, which is unlikely. Americans are becoming increasingly focused on healthier, lower-calorie alternatives to soda and Snapple beverages really aren't much lower in calories or sugar than most sodas.
The brand has tremendous value and is probably the leader in its category, but is not destined for the kind of long-term growth that Vitamin Water will see. Vitamin Water was Coke's largest acquisition ever, and buying another big brand like Snapple would mean that the company is on a bona fide buyout binge. Such binges seldom lead to an increase in shareholder value.
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