Exhibit 99.1
For Immediate Release
CONTACT: Anne A. Tarbell
Triarc Companies, Inc.
212/451-3030
www.triarc.com
TRIARC COMPLETES SALE OF SNAPPLE BEVERAGE GROUP TO
CADBURY SCHWEPPES
ENTERPRISE VALUE OF $1.45 BILLION
New York, October 25, 2000 -- Triarc Companies, Inc. (NYSE: TRY) announced
today that it has completed the previously announced sale of its Snapple
Beverage Group to affiliates of Cadbury Schweppes plc (LSE: CBRY, NYSE: CSG)
at an enterprise value of approximately $1.45 billion.
The transaction includes the sale of Snapple Beverage Group's premium beverage
business - Snapple(R), Mistic(R) and Stewart's(R) - and soft drinks concentrates
business - Royal Crown(R), Diet Rite(R), RC Edge(TM) and Nehi(R) - for
approximately $910 million in cash plus the assumption of approximately $420
million of debt. In addition, payments of approximately $120 million will be
made by Snapple Beverage Group with respect to employee options following the
closing.
Approximately $450 million of the cash received was used to repay outstanding
amounts under Snapple's existing credit facilities.
Nelson Peltz, Chairman and Chief Executive Officer of Triarc, said, "We have
realized substantial value from our Snapple investment with its sale to Cadbury
Schweppes. Taking into account the sale of Snapple, we will have a cash position
in excess of $400 million and we will be nearly debt-free. We are carefully
evaluating options for the use of our significant cash position, including
acquisitions, share repurchases and investments, which we believe can further
build shareholder value."
Peltz added, "Over the past few years, Mike Weinstein and his team have done an
extraordinary job in turning around Snapple and building the Mistic, Stewart's
and Royal Crown businesses. We wish the Snapple Beverage Group team all the best
with Cadbury Schweppes and thank them for their many contributions to Triarc."
The operating results for Snapple Beverage Group prior to the sale will be
classified as discontinued operations in Triarc's third quarter 2000 financial
statements to be released in mid-November.
Triarc expects to record a pre-tax gain on the transaction in the fourth quarter
in excess of $700 million (in excess of $400 million after taxes and other
adjustments), or more than $16.00 per fully diluted share after taxes.
Triarc is a restaurant franchisor of Arby's(R)and T.J. Cinnamons(R).
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Notes to Follow
NOTES TO PRESS RELEASE
The statements in this press release that are not historical facts, including
most importantly, those statements preceded by, followed by, or that include
the words "may", "believes", "expects", "anticipates" or the negation
thereof, or similar expressions, constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995
(the "Reform Act"). For those statements, Triarc Companies, Inc. (the
"Company") claims the protection of the safe-harbor for forward-looking
statements contained in the Reform Act. These forward-looking statements are
based on our expectations and are susceptible to a number of risks,
uncertainties and other factors, and our actual results, performance and
achievements may differ materially from any future results, performance or
achievements expressed or implied by such forward-looking statements. Such
factors include, but are not limited to, the following: competition,
including product and pricing pressures; success of operating initiatives;
the ability to attract and retain customers; development and operating costs;
advertising and promotional efforts; brand awareness; the existence or
absence of adverse publicity; market acceptance of new product offerings; new
product and concept development by competitors; changing trends in customer
tastes and demographic patterns; the success of multi-branding; availability,
location and terms of sites for restaurant development by franchisees; the
ability of franchisees to open new restaurants in accordance with their
development commitments, including the ability of franchisees to finance
restaurant development; the performance by material customers of their
obligations under their purchase agreements; changes in business strategy or
development plans; quality of management; availability, terms and deployment
of capital; business abilities and judgment of personnel; availability of
qualified personnel; labor and employee benefit costs; the potential impact
on franchisees' store level sales and resulting royalty revenues that could
arise from interruptions in the distribution of supplies of food and other
products to franchisees; general economic, business and political conditions
in the countries and territories in which the Company operates, including the
ability to form successful strategic business alliances with local
participants; changes in, or failure to comply with, government regulations,
including franchising laws, accounting standards, environmental laws and
taxation requirements; the costs, uncertainties and other effects of legal
and administrative proceedings; the impact of general economic conditions on
consumer spending; and other risks and uncertainties affecting the Company
and its subsidiaries detailed in the Company's Annual Report on Form 10-K for
the year ended January 2, 2000, its Quarterly Reports on Form 10-Q and other
current and periodic filings by the Company with the Securities and Exchange
Commission, all of which are difficult or impossible to predict accurately
and many of which are beyond the control of the Company. The Company will not
undertake and specifically declines any obligation to publicly release the
result of any revisions, which may be made to any forward-looking statements
to reflect events or circumstances after the date of such statements or to
reflect the occurrence of anticipated or unanticipated events. In addition,
it is the Company's policy generally not to make any specific projections as
to future earnings, and the Company does not endorse any projections
regarding future performance that may be made by third parties.
