Refresco Rejects $1.5 Billion Takeover Bid From PAI Partners

  • French buyout firm said to be weighing an offer for Refresco
  • Deal would take the Dutch soft drink bottling firm private

Refresco Group NV rejected a takeover bid from French private equity firm PAI Partners SAS that valued the Dutch soft-drink bottler at 1.4 billion euros ($1.5 billion).

Refresco received the offer on April 6 and its board decided that the proposed terms didn’t merit further investigation, the company said in a statement on Wednesday in response to a Bloomberg News report. PAI is weighing a bid for the company to take it private, and other buyout firms may also be interested, people familiar with the matter said.

No final agreements have been reached, the people said, asking not to be identified because the deliberations are private. Refresco, which listed in 2015, jumped 10 percent at 12:21 p.m. in Amsterdam, its biggest-ever gain. That gave the Rotterdam-based company a market value of 1.35 billion euros. A representative for PAI declined to comment on the firm’s interest in Refresco.

Private equity firms are increasingly looking for opportunities to take publicly traded companies private or to carve out units from larger businesses as a way to invest mounting piles of cash. German drugmaker Stada Arzneimittel AG agreed to sell itself to Bain Capital and Cinven for 5.3 billion euros on Monday after a long-fought takeover contest with other buyout firms.

Founded in 1999 and led by Chief Executive Officer Hans Roelofs, Refresco operates 29 manufacturing facilities in the U.S. and Europe, according to its website. The company reported net profit of 81.5 million euros and revenue of 2.1 billion euros in 2016.

— With assistance by Kiel Porter

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