ATLANTA – DS Services Holdings, Inc. (“DS Services”), a leading bottled water and coffee direct-to-consumer services provider in the United States and a portfolio company of Crestview Partners, announced on Friday (Dec. 12, 2014) that the previously announced acquisition of its sole stockholder and parent company, DSS Group, Inc., by Cott Corporation for approximately $1.25 billion has closed.
The acquisition extends Cott’s beverage portfolio into new and growing markets, including water and coffee home and office delivery services, water filtration services, and retail services, while creating revenue and cost synergies as well as portfolio expansion.
In addition, the acquisition is expected to broaden the distribution platform of Cott by adding a national direct-to-consumer distribution channel with the approximately 2,100 customer routes operated by DS Services.
“The DS Services acquisition accelerates Cott’s diversification strategy and shifts the company from a primarily CSD and shelf stable juice beverage business to a diversified beverage provider across multiple channels with improved margins and growth outlook,” said Jerry Fowden, Chief Executive Officer of Cott.
“We believe this acquisition will provide us with the resources and scale necessary to drive our future success and build shareowner value,” continued Mr. Fowden.
DS Services, based in Atlanta, Georgia, will operate as a subsidiary of Cott and will continue to be led by Tom Harrington, DS Services’ current CEO and President, as well as the company’s present leadership team.
Mr. Harrington noted, “We are excited to join the Cott family, which we believe will provide additional opportunities for our employees and customers alike, as well as provide us with the platform to continue to drive growth through portfolio expansion and the capture of revenue and cost synergies.”