Atlanta-based bottled water provider DS Services of America, which has been growing through acquisitions, will be acquired by Cott Corp. along with its parent company DSS Group Inc.
DSS Group and Cott value the deal at about $1.25 billion, including the assumption of DSS Group debt.
Cott is a major producer of private label soft drinks, juice drinks, sparkling water and energy drinks. The company makes sodas for Sam’s Club, Publix and other retailers and has a research and development facility and concentrate plant in Columbus.
In addition to bottled water under the Crystal Springs, Deep Rock and Sparkletts brands, DS Services provides brewed beverages, water coolers and filtration services. DS Services has about 1.5 million customers through a network of more than 210 sales and distribution facilities and more than 2,100 routes.
New York-based private equity firm Crestview Partners last year acquired DS Services, which was founded in 2003.
“We believe this transaction will enable DSS to accelerate its growth initiatives and will firmly establish Cott as a leader in the beverage space,” DSS Group Chairman Jeff Marcus said in a statement.
DS Services recently has been expanding on the West Coast. In June DS Services acquired Sequoia Spring Water of Compton, Calif., a bottled water and filtration service company. In August last year, DS Services announced it was acquiring the office coffee and water filtration service divisions of Everett, Wash.-based Cascade Coffee Inc.
DSS Group will become a subsidiary of Cott and continue to be based in Atlanta. The deal is expected close in January.
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