By Dominic Chopping

Denmark's Royal Unibrew said Monday it has agreed to buy soft drinks maker Vrumona from Heineken for 300 million euros ($327.4 million).

Netherlands-based Vrumona produces a range of own brands like Royal Club, Sisi, Sourcy, Sourcy Vitamin Water as well as partner brands like 7 Up, Pepsi and Rivella, with the majority of its product portfolio within the no/low sugar and calories segment.

The company operates seven production lines at its facility with a current annual output of around 3.1 million hectolitres, and Royal Unibrew said it plans to invest in further production capabilities while using spare capacity to support its global production footprint.

"Vrumona will become a new growth platform for Royal Unibrew in continental Europe and is expected to drive organic earnings growth in the coming years," said Royal Unibrew Chief Executive Lars Jensen.

Vrumona posted net revenue of EUR200 million in 2022 with normalized earnings before interest, tax, depreciation and amortisation of EUR25 million.

Royal Unibrew said the acquisition is expected to be accretive to earnings per share in 2024.

The deal is expected to close in September or October this year, subject to regulatory approval.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 03, 2023 03:30 ET (07:30 GMT)

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