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PLANO, Texas — Dr. Pepper Snapple Group has signed a nonbinding letter of intent to acquire Davis Beverage Group and Davis Bottling Co.
Dr. Pepper Snapple said late Wednesday that the company and Davis have begun due diligence and aim to close the sale in the fourth quarter. Financial terms of the transaction won’t be disclosed.
Based in Bethlehem, Pa., Davis Beverage Group distributes a range of Dr. Pepper Snapple brands — including 7UP, Snapple, A&W, Canada Dry and Sunkist — to a 42-county territory covering most of the eastern half of Pennsylvania, excluding the Philadelphia area, and western and central New Jersey. Davis also carries other noncarbonated products, including several third-party brands that already have significant distribution agreements with Dr. Pepper Snapple, such as Bai5, FIJI, Vita Coco and Neuro.
In addition to bottling carbonated soft drinks in a wide range of PET package sizes, Davis Bottling currently produces IBC, Stewarts and Crush in glass bottles and Orangina in 1.75-liter PET for Dr. Pepper Snapple on a contract basis.
If completed, the acquisition would include most of Davis’ direct-store delivery territory in Pennsylvania and a portion of its New Jersey territory, as well as its production and distribution facilities, delivery vehicles, vending equipment and other assets.
Dr. Pepper Snapple noted that the deal would build on it efforts to strengthen its route to market, improve operating efficiency and leverage its integrated business model.
"Davis has proudly served customers and consumers for more than 70 years and been a great partner to us both as a distributor of our brands and as a contract manufacturer," stated Larry Young, president and chief executive officer of Dr. Pepper Snapple. "We’re excited about the possibility of building on their great heritage while nearly doubling our direct-store delivery footprint in Pennsylvania and adding their glass bottling capabilities."
