UK soft-drink maker Britvic is once again expanding in Brazil with an announcement that it is set to acquire juice business Bela Ischia in a deal worth R$218m (US$ 66 million) - the second acquisition for Britvic in Brazil in less than two years. 

Bela Ischia produces juices, liquid concentrates and powder concentrates and operates in Rio de Janeiro and Minas Gerais, in the south east of the country. 

This latest move in Brazil follows Britvic acquiring Empresa Brasileira de Bebidas e Alimentos SA ("ebba") and the leading liquid concentrate brands Maguary and Dafruta in Brazil, the worlds largest concentrates market, in September 2015. 

Britvic says, Ebba has been integrated successfully into the group, and has delivered excellent results in its first year “against challenging macro conditions.”

The juice category in Brazil is made up of ready to drink (RTD) juice, liquid concentrates, and powder concentrates; the performance of all three is closely related. Bela Ischia, like ebba, competes in liquid concentrates and RTD juice. The consolidation of liquid concentrates and RTD juice will allow Britvic to strengthen its competitive offer, in particular against the larger powders brands.

Britvic describes Bela Ischia as a “strong and well recognized consumer brand,” and the acquisition both strengthens Britvics brand portfolio in Brazil and creates a broader regional footprint by complementing the existing ebba strengths in Sao Paulo and the north east.

Britvic expects the combined businesses to realize substantial cost savings, principally from efficiencies in procurement, production, logistics and administration. In addition, revenue benefits are expected to be generated from marketing the wider brand portfolio across a broader geographical presence.

“The proposed acquisition of Bela Ischia represents an exciting opportunity to build on our very strong first year in Brazil with further expansion of our presence in a large and growing soft drinks market. Bela Ischia operates in a category wher Britvic has proven capability of generating growth, launching new products and establishing brand leadership and is an excellent complementary fit with our existing business,” says Britvic CEO, Simon Litherland. 

“Our due diligence to date has identified significant cost synergies and potential further revenue benefits arising from a broader brand portfolio and geographical presence. As a result, we are confident that this complementary acquisition should create a fantastic platform to consolidate our strategic position in Brazil and generate additional shareholder value over the coming years.”

The transaction terms have been agreed in principle and the Britvic management has identified certain specific closing conditions, including final due diligence and a completion audit. Subject to satisfactory conclusion to these conditions, that completion is anticipated by the end of March 2017.