Drinks firm takeover sparks delight

A 120-year-old soft drinks company in the Black Country has been taken over in a move that will create dozens of jobs and spark millions of pounds investment.

Family business Purity Soft Drinks Ltd in Wednesbury has been acquired by London private equity firm Langholm Capital, which owns Tyrrells Potato Crisps, the Bart Ingredients Co and Dorset Cereals.

As a result of the takeover, the Mounts Road site will receive £4 million investment, including £2.2m on a new production line.

This will allow the firm to blow its own bottles – at the moment they are brought in – and fill 18,000 bottles an hour compared to 12,000 currently. Mike Cox, who will retain his role as director at the company and retain a shareholding, said: "This is very exciting news.

"We are looking to triple the size of the business in the next three or four years. Okay we will have to work differently because we will have new management but it's not a bad thing.

"We're going from a family business to a really structured business model with the potential for loads of growth."

The takeover will allow Mr Cox's brother, 56-year-old current chief executive Tim Cox, to retire so he can follow the career of his son, Worcester County Cricket Club wicket keeper Ben Cox. Mike Cox said dozens of new jobs would be created at the firm over the next two to three years as a result of the investment.

He said: "We have been approached by a number of companies in recent years but this was the only one we were happy with.

"Had one of the major soft drinks companies come in, it could have been bad news.

"But with this deal everything is staying in Wednesbury."

Founded in 1892, Purity Soft Drinks Ltd produces more than 50 million bottles of soft drinks every year. It currently employs 68 workers in Wednesbury. The Cox family has owned the business since Douglas Cox bought it in 1944.

Since then the firm's annual turnover has increased from £100,000 to more than £16m this year.

Garry Nield, who was managing director of former Wednesbury firm Red Mill Snack Foods between 1999 and 2004, is the new chief executive of Purity Soft Drinks.

He said: "I am delighted to be working in the West Midlands again.

"We're looking forward to a very positive future.

The business will remain independent."

No-one from Langholm Capital was available for comment.