C&C to buy Constellation UK cider brands

Irish drinks group C&C said it agreed to buy all the UK cider assets of Constellation Brands - including the Blackthorn, Olde English and Gaymers brands - for 45 million pounds in cash.

C&C will finance the deal via a new 60 million pound bank facility.

The Irish drinks group, which already owns the Magners and Bulmers brands, said the deal is not conditional on clearance by the Office of Fair Trading, but will be subject to review by the regulator.

C&C expects the transaction to complete by mid-January and to be immediately earnings accretive.

It expects to see about 3 million pounds of synergies by the end of the 2012/13 financial year, and cash costs for achieving these synergies of about 1.5 million pounds to be incurred in the 2010/11 financial year.

C&C agreed to buy the Scottish and Irish businesses of Anheuser-Busch InBev in August, giving it Scotland's top lager Tennent's.