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    Irn Bru company holding Tango talks

    Category: Invoice Discounting — Mark on September 11, 2012

    The Scottish company that produces Irn Bru last week confirmed it was in talks with the makers of Tango, in regards to a possible merger.

    AG Barr, which is based in Cumbernauld, said that discussions were at an early stage.

    However, Essex-based Britvic accepted the offer of talks and then allowed the confirmation. It highlights that through the ongoing economic challenges, it is not just smaller firms that need commercial finance.

    In Scotland, it also shows what opportunities are out there – something which is true across business sectors.

    Many have found that through new financial strategies, such as invoice factoring, they are able to free up cash flow for investment in opportunities, no matter how bold.

    The move by Barr will certainly be seen by many as a bold move. As the smaller company, it is confident that the deal could be completed and a joint statement said the talks are:

    “The combination would have compelling industrial logic and represents an opportunity for both companies to enhance their industry position, and achieve significant synergies and shareholder value.”

    Should the deal go through, Britvic shareholders will own 63 per cent of the new company, with the board of directors being drawn from both boards of the separate companies.

    There has been no early indication as to what would happen to existing employees, nor where the new company would have its headquarters.

    Following the announcement on Wednesday 5th September, share prices in both companies increased.

    Britvic’s stock rose by just under 13 per cent, valuing it at £890m, while AG Barr rose by around 8 per cent, putting its value at £500m.

    'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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