Citi buys US drinks company

Citicorp Venture Capital has purchased regional US soft drink company Big Red for an undisclosed amount.

Waco, Texas-based beverage company Big Red has been purchased for an undisclosed amount by Citicorp Venture Capital, the US bank’s mid-market leveraged buyout platform founded in 1968.

Big Red was founded in 1937 and has a dominant market position in San Antonio, Louisville, Dallas and Houston, according to a statement. Its products include carbonated beverages and energy drinks. 

In connection with the deal, Big Red has acquired AllSport, a sports drink originally founded by Pepsi

Former Red Bull chief executive Gary Smith has been appointed CEO of Big Red, where he’s expected to help strengthen the company’s national distribution.

CVC typically makes controlling investments of between $100 million and $500 million. It is a part of the bank’s Alternative Investments division, which manages products across private equity, hedge funds, real estate, structured products and infrastructure.