UK-based soft drinks manufacturer Britvic has turned down an improved takeover offer from Danish brewing giant Carlsberg Group, following an initial offer earlier this month.

Britvic, which operates five drinks canning lines in its facility at Rugby, producing up to 550,000 cans of soft drinks an hour, rejected the improved cash offer to acquire the entire share capital of the company, at an offer price of £12.50 (US$15.81) per share.

That offer followed an initial proposal from Carlsberg, made on 6 June, at an offer price of £12 per Britvic share.

In a statement Britvic said: “The Board together with its advisers carefully considered the Second Proposal, and concluded that it significantly undervalues Britvic, and its current and future prospects. Accordingly, the Board unanimously rejected the Second Proposal on 17 June 2024.”

Carlsberg Group outlined in a statement that their £3.1 billion ($3.92bn) takeover bid  “represents a compelling opportunity for Britvic shareholders”, noting that it implied a value multiple of 13.1 times Britvic’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of £302 million ($381.99m) for the 12-month period ending 31 March 2024, and a premium of 29% on the Britvic closing price of 970 pence per share on 19 June.

Carlsberg is now considering its position, the company added. It will need to make its intentions clear to make a formal offer by 19 July, according to takeover rules, or abandon the proposal.

City of London analysts agree this year Britvic can expect around 5% sales growth, profits of at least £200m, and earnings per share to grow in the region of 10% per year.

In 2023, Britvic invested £13m in the fifth canning line at the Rugby facility, which followed the £26.9m installation of a fourth canning line in 2021. The addition of those two lines doubled its canning capacity, which alongside four PET bottling lines made the site one of the five largest soft drinks manufacturing sites in Europe, Britvic said.

The company has been buoyed by strong growth in Brazil, as well as other international markets.

Britvic produces its own range of soft drinks, as well as a number of other brands, establishing a 20-year franchise bottling agreement with PepsiCo for the production, distribution, marketing and sales in the UK of the US giant's carbonated soft drinks, including Pepsi, Pepsi Max, 7UP, Mountain Dew, and the Rockstar energy drink portfolio.

Last year, Britvic also acquired ready-to-drink iced coffee brand Jimmy's, which uses resealable aluminium bottle-cans manufactured by Japanese canmaker Daiwa, as well as conventional slim 250ml cans, for its products.