© Philippe Krauer/Eden Springs
Cott Corporation has entered into a definitive share purchase agreement to acquire Eden Springs, a European home and office water delivery (HOD) company, for €470 million.
The company is being sold by investment funds affiliated with Rhône Capital. The purchase price amounts to approximately seven times Eden Springs’ adjusted pre-tax earnings – over €60 million – for this year.
The acquisition is consistent with Cott’s strategy to expand in HOD water, coffee and tea services as well as filtration services where its platform, operating strength and potential synergies can be leveraged. The acquisition broadens the distribution platform of Cott’s existing UK/European business by providing access to a direct-to-consumer route distribution platform in Europe serving over 800,000 homes and offices, Cott said.
Eden Springs recorded pro-forma revenues of more than €360 million in 2015.
The acquisition is expected to provide Cott with market-leading positions and strong platforms in multiple new geographies; improve its channel mix outside of large-format retail and supermarket stores; continue its shift to higher-margin categories; offer cross selling and vertical integration opportunities to leverage DS Services’ and Cott’s products; reduce customer concentration; and provide procurement cost and other synergies over a three year period.
It could also be a platform from which Cott could complete further related acquisitions, the Canadian-headquartered company revealed.
“The Eden Springs acquisition is another great step in our stated strategy to pursue opportunities in the higher margin home and office water delivery, office coffee and tea services and filtration categories where we believe our platform, operating strength and synergies can be leveraged,” said Jerry Fowden, Cott’s chief executive officer. “Our Better for You beverage platform will make up over 60% of our EBITDA inclusive of Eden and we will have strong leadership positions in both North America as well as multiple European countries.”
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