Private label beverage producer Cott Corporation has acquired US-based water and coffee producer DSS Group, in a previously announced deal worth $1.25bn.
A definitive merger agreement to this effect was signed between both the companies in November.
DSS Group is the parent company of DS Services of America. It produces water and coffee direct-to-consumers in the US.
It will now operate as a subsidiary of Cott.
The acquisition will see Canada-based Cott expanding its beverage portfolio into new and growing markets, including water and coffee home and office delivery services, water filtration services, and retail services.
Cott CEO Jerry Fowden said: "The DSS 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.
"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.
Cott will also secure an additional national direct-to-consumer distribution channel with the 2,100 customer routes operated by DSS.
The company previously said that it expects the acquisition to provide cost and revenue synergies of approximately $25m a year by the end of 2017.
Image: DSS produces produces water and coffee direct-to-consumers. Photo: courtesy of pandpstock001 / FreeDigitalPhotos.net.
