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Cott Sells Beverage Manufacturing To Refresco Puts Focus On Office Coffee And Water Delivery

TORONTO -- Cott Corp., based here, said it has entered into a definitive agreement to sell its traditional beverage manufacturing business to Tampa, FL-based Refresco for $1.25 billion. Cott said the move will enable it to focus on its office coffee service and pure water filtration and delivery businesses. The transaction is expected to close in the second half of 2017. The transaction includes Cott's North America, UK and Mexico businesses, excluding its RCI International division and associated concen...

August 7, 2017 by Emily Jed

TORONTO -- Cott Corp., based here, said it has entered into a definitive agreement to sell its traditional beverage manufacturing business to Tampa, FL-based Refresco for $1.25 billion. Cott said the move will enable it to focus on its office coffee service and pure water filtration and delivery businesses. The transaction is expected to close in the second half of 2017.

The transaction includes Cott's North America, UK and Mexico businesses, excluding its RCI International division and associated concentrate facility and Aimia Foods division.

Founded 60 years ago, Cott is one of the world's largest producers of beverages on behalf of retailers, brand owners and distributors. It's also a leading provider of home and office bottled water delivery in North America and Europe, and coffee roaster and blender of iced tea for the U.S. foodservice industry. It reportedly generates about $1.7 billion in revenues.

"The sale of Cott's traditional business substantially accelerates our ability to deleverage the business and positions us well to grow our water, coffee, tea and filtration businesses both organically and through value accretive tuck-in acquisitions," said Cott chief executive Jerry Fowden. He added that exploring larger-scale acquisitions are part of Cott's strategy in the OCS and water markets.

Cott says it reaches more than 2.3 million residences, businesses, restaurant chains, hotels and motels, retailers and healthcare facilities across North America and Europe.

"We are excited to welcome Cott Beverages to the Refresco family," said Refresco chief executive Hans Roelofs. "We have been focused on growing our platform in both North America and Europe, and this transaction is a significant enhancement to our buy and build strategy."