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Cott Acquires Mountain Valley Spring Co For 785 Million

ATLANTA -- DS Services, a Cott Corp. subsidiary, has acquired Mountain Valley Spring Co. for $78.5 million in cash from Great Range Capital . Mountain Valley is a spring and sparkling water brand and is one of the most recognized home and office distribution brands in the United States. It has been bottling in glass continuously since 1871, with one production facility in Hot Springs, AR, and four protected and owned springs in the Ouachita Mountains with excess capacity to supply long-term demand...

October 18, 2018

ATLANTA -- DS Services, a Cott Corp. subsidiary, has acquired Mountain Valley Spring Co. for $78.5 million in cash from Great Range Capital.
 
Mountain Valley is a spring and sparkling water brand and is one of the most recognized home and office distribution brands in the United States. It has been bottling in glass continuously since 1871, with one production facility in Hot Springs, AR, and four protected and owned springs in the Ouachita Mountains with excess capacity to supply long-term demand.  Channels of business include home and office delivery, the natural food channel, on-premise, e-commerce and strategic contract packing.
 
"We are very excited about strengthening our business and adding a fast-growing premium spring, sparkling and flavored water American brand to our portfolio," said DS Services president Dave Muscato. "We have added not only a high growth premium water product but also an American brand that we can offer to consumers in iconic glass bottled packages."
 
Mountain Valley focuses on spring water bottled in a variety of glass bottle sizes ranging from five-gallon bottles which are delivered to homes and offices throughout the U.S. to single-serve sizes such as one liter, 500mL and 333mL.
 
Over the years, Mountain Valley has added sparkling and flavored sparkling water in glass bottles as well as lightweight plastic offerings for its sparkling and spring water lines.  It has grown revenue from approximately $39 million in 2015 to more than $50 million in estimated sales for 2018, with high single-digit growth expectations for 2019.
 
"The Mountain Valley acquisition is another positive step in building out our water solutions portfolio and meeting our stated desire to continue to pursue acquisitions in the growing water and coffee segments, where we believe our platform, operating strength and synergies can be leveraged," commented Tom Harrington, Cott's head of route-based services and incoming chief executive.
 
Cott is a water, coffee, tea, extracts and filtration service company with a presence in the North American and European home and office bottled water delivery industry. It's also a leader in custom coffee roasting, blending of iced tea, and extract solutions for the U.S. foodservice industry.  The company says it reaches more than 2.4 million customers or delivery points across North America and Europe supported by strategically located sales and distribution facilities and fleets, as well as wholesalers and distributors.  It serves homes, businesses, restaurant chains, hotels and motels, retailers and healthcare facilities.