NEW YORK -- At least two bidding groups plan to submit offers today to acquire Cadbury Schweppes Plc's U.S. beverage unit for as much as $15.8 billion, sources familiar with the situation told Reuters.
London-based Cadbury, the world's biggest confectionery company, plans to weigh the proposals before outlining its strategic plans and cost-cutting initiatives on June 19, sources said.
Cadbury may spin off the U.S. beverage unit through an initial public offering (IPO), but a sale is more likely, one source told the news agency. [image-nocss] A final decision on the unit, which includes 7-UP, Dr Pepper and Canada Dry Ginger Ale, may be several weeks away, other sources said.
One bidding group includes Bain Capital Partners, Thomas H. Lee Partners and TPG, while a second team includes Blackstone Group, Kohlberg Kravis Roberts & Co. and Lion Capital, Reuters said. Lion and Blackstone bought Cadbury's continental European beverages business for $2.5 billion in February 2006.
Meanwhile, a third bidding consortium is likely to include Cott Corp. which bottles beverages for Wal-Mart Stores Inc., and one or more private-equity firms, one source added.
Cadbury and Blackstone declined to comment to the news agency, while Cott and the other private-equity firms could not be reached for comment.
In March, Cadbury, the maker of Trident chewing gum, Certs breath mints and Dairy Milk chocolate, unveiled plans to split its candy and beverage units. That move came after investors, led by U.S. billionaire investor Nelson Peltz, pushed the company to sell or spin off its U.S. beverage unit. Selling the beverage unit could leave the remaining confectionery business of Cadbury more vulnerable to a takeover, analysts have said.
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