Cadbury Schweppes, the confectionary and soft drinks maker, has spent £25.3 million to buy the Seven-Up Bottling Company of San Francisco.
Cadbury has bought the company, which employs 600 people, from the Easley family. The Seven-Up Bottling Company operates in 29 counties in Northern California, has ten warehouses and one manufacturing plant.
The business, which in 2005 had revenues of around £74 million, will be integrated into Cadbury's existing bottling business in America.
Cadbury Schweppes said the move was part of its plans to control the route to market and is the second acquisition of a bottling company in America since April.
In April, the company spent £186 million on buying the Carlyle Group's 51 per cent stake in the Dr Pepper Seven Up Bottling company, to take total control.
Half of the group's profits come from its beverage business in North America, and it said it had £300 million available for further acquisitions.