Cott Subsidiary Buys Mountain Valley Spring For 78.5 Mln

(RTTNews) - Cott Corp. (COT) Monday said its subsidiary DS Services acquired The Mountain Valley Spring Company for $78.5 million in cash from Great Range Capital.

Mountain Valley is an American brand of spring and sparkling water. It has been bottling in glass continuously since 1871, with one production facility in Hot Springs, Arkansas, and four protected and owned springs in the Ouachita Mountains. Mountain Valley has grown revenue from approximately $39 million in 2015 to over $50 million in estimated sales for 2018, with high single digit growth expectations for 2019.

The purchase price of $78.5 million represents about 8x estimated year 2 post-synergy adjusted EBITDA. Cott financed the transaction through a combination of cash on hand and drawing on its asset based lending facility. The transaction closed on October 15, 2018.

Dave Muscato, President - DS Services, commented, "We are very excited about strengthening our business and adding a fast-growing premium spring, sparkling and flavored water American brand to our portfolio. 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."