Cott Corporation will acquire US bottled water distributor Crystal Rock in a deal worth approximately $35 million.
The transaction, which sees Cott pay $0.97 per share in cash for the company, was unanimously approved by both the Cott and Crystal Rock boards of directors.
Crystal Rock is a 100-year-old direct-to-consumer home and office water, coffee, filtration and office supply service delivery business serving customers throughout New York and New England.
It bottles and distributes natural spring water under the Vermont Pure brand, purified water with minerals added under the Crystal Rock Waters label and it roasts and packages coffee under its Cool Beans brand.
The majority of its sales are derived from a route distribution system that delivers water in three- to five-gallon reusable, recyclable bottles, and coffee in fractional packs or pods.
Cott Corporation CEO Jerry Fowden said: “The Crystal Rock acquisition is another positive step in our stated strategy to pursue acquisitions in the higher margin home and office water delivery and coffee services categories, where we believe our platform, operating strength and synergies can be leveraged.”
Tom Harrington, CEO of DS Services, a wholly-owned subsidiary of Cott, added: “We are very excited about strengthening our business in the New York and New England high density markets and firmly believe that our proven track record of integrating companies onto our platform will result in improved performance within our operations in the north-eastern United States.”
In 2016, Cott Corporation acquired European home and office water delivery company Eden Springs for €470 million, a deal which helped it boost its revenue by 22% in its most recent quarterly results.
Last month, Refresco’s $1.25 billion purchase of Cott’s soft drinks business was finalised as Cott shifts its focus towards healthier products.
© FoodBev Media Ltd 2018