Suntory buys Ribena and Lucozade for GBP 1.34 billion

They like their soft drinks alright. Japan’s beverage company Suntory has bought the Lucozade and Ribena brands from the UK’s biggest drugmaker GlaxoSmithKline (GSK) for GBP 1.35 billion (USD 2.1 billion). Suntory will acquire the global rights to the brands and GSK’s Coleford manufacturing site.

GSK first announced its intention to sell off the two brands in February, confirming the news in April.

The deal fits with Suntory’s strategy to expand overseas to counter a shrinking domestic market.

The energy drink Lucozade and the Ribena juice brand will help Suntory’s food and beverage unit move closer to its 2 trillion yen (USD 20 billion) annual sales target in 2020, the company said.

Suntory is Japan’s second-largest drinks manufacturer. In 2009 it bought the

Orangina Schweppes brand from private equity firms Blackstone Group and Lion Capital for EUR 2.6 billion (USD 3.84 billion), which gave it a significant presence in France and Spain.