TORONTO, ON and TAMPA, FL, U.S. – Cott Corporation has closed its previously announced acquisition of Aquaterra, Canada’s oldest and largest direct-to-consumer home and office water delivery business for approximately C$62 million (approximately $45 million USD on the closing date).
The acquisition was funded using cash on hand as well as borrowings under Cott’s asset based lending facility.
“The Aquaterra acquisition demonstrates the continuing execution of our strategy to become a more diversified beverage provider across multiple channels and geographies, as well as our continuing consolidation of the higher margin home and office water delivery and coffee services category,” commented Jerry Fowden, Cott’s Chief Executive Officer.
“We believe our DS Services platform, operating strength and capabilities will improve the operation of Aquaterra and provide synergies during the coming years’ post integration,” continued Mr. Fowden.
The acquisition extends Cott’s Canadian beverage portfolio into new and growing markets, including water and coffee home and office delivery, water filtration services, and retail services. The acquisition broadens Cott’s customer reach adding over 70,000 new customers and delivery points.
Aquaterra will become a part of Cott’s DS Services reporting segment and will be led by Tom Harrington, DS Services’ CEO.
Mr. Harrington commented, “This acquisition marks a great day in DS Services’ storied history. With our expansion into Canada, we are furthering our mission to be North America’s favorite water, coffee and tea service provider where consumers live, work and play.”
Further information will be provided with Cott’s fourth quarter 2015 earnings release presentation and conference call on Thursday, February 18, 2016.