Return to search

Cott wraps up $62 mln acquisition of Birch Hill’s Aquaterra

Cott Corp (NYSE: COT) (TSX: BCB) has closed its previously announced acquisition of Aquaterra Corp, a Canadian direct-to-consumer home and office water delivery business, for about $62 million (US$45 million). Cott said the deal will extend its Canadian beverage portfolio into new and growing markets, and give it more than 70,000 new customers. Founded in 1882 as Laurentian Water Co, Mississauga, Ontario-based Aquaterra has been a portfolio investment of Canadian private equity firm Birch Hill Equity Partners since 2006.


Cott Announces Closing of Aquaterra Acquisition

TORONTO, ON and TAMPA, FL–(Marketwired – January 05, 2016) – Cott Corporation (NYSE: COT) (TSX: BCB) announced today that it 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.

About Cott Corporation

Cott is one of the world’s largest producers of beverages on behalf of retailers, brand owners and distributors, and has one of the broadest home and office bottled water and office coffee services distribution networks in the United States and Canada, serving national, regional and local offices as well as households.

Cott produces multiple types of beverages in a variety of packaging formats and sizes through its large manufacturing footprint, broad distribution network, substantial research and development capability and high-level of quality and customer service which enables Cott to offer its customers a strong value-added proposition of low cost, high quality products and services. In addition, Cott is a national direct-to-consumer provider of bottled water, office coffee and water filtration services in the United States and Canada, offering a comprehensive portfolio of beverage products, equipment and supplies to over 1.5 million customers.

With over 9,500 employees, Cott operates its manufacturing and distribution facilities in the United States, Canada, the United Kingdom and Mexico. Cott also develops and manufactures beverage concentrates, which it exports to countries around the world.

Safe Harbor Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 conveying management’s expectations as to the future based on plans, estimates and projections at the time Cott makes the statements. Forward-looking statements involve inherent risks and uncertainties and Cott cautions you that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statement. The forward-looking statements contained in this press release include, but are not limited to, statements related to expected synergies and contribution to Cott’s performance and the potential impact the acquisition will have on Cott and related matters. The forward-looking statements are based on assumptions regarding the time necessary to satisfy the conditions to the closing of the transaction and management’s current plans and estimates. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate.

Factors that could cause actual results to differ materially from those described in this press release include, among others: changes in estimates of future earnings and cash flows; expected synergies and cost savings are not achieved or are achieved at a slower pace than expected; integration problems, delays or other related costs; retention of customers and suppliers; and unanticipated changes in laws, regulations, or other industry standards affecting the companies.

The foregoing list of factors is not exhaustive. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors contained in Cott’s Annual Report on Form 10-K and its quarterly reports on Form 10-Q, as well as other filings with the securities commissions. Cott does not undertake to update or revise any of these statements in light of new information or future events, except as expressly required by applicable law.

Jarrod Langhans
Investor Relations
Tel: (813) 313-1732

Photo courtesy of Shutterstock