Panmure Gordon recommend Vimto to Buy
Source: Liverpool Daily Post
Liverpool stockbroker Panmure Gordon has reiterated its “buy” recommendation for shares in Newton-le-Willows- based Vimto soft drink maker Nichols, on the back of an investment in its Middle Eastern distribution partner.
Aujan Industries, which distributes Vimto, has revealed that Coca-Cola is to purchase 50% of its equity as it increases its exposure to this high growth region.
Panmure Gordon analyst Damian McNeela said: “We expect that the investment by Coca-Cola should allow for increased distribution across the Middle East and North Africa region in Aujan’s owned and licensed brands.”
The Middle East is Nichols’s largest export market, representing about 11% of group sales, worth about £9.1m in 2010, which was a 13% rise.
Aujan Industries, which licences the Vimto brand from Nichols in the Middle East, said the transaction is valued at about £636m, and confirmed its aim of doubling sales over the next five years, which should benefit its main brands, including Vimto
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