International beverage distributor Cott Corp. acquired Hot Springs-based Mountain Valley Spring Co. on Monday (Oct. 15) in a $78.5 million cash deal from Great Range Capital.
In a statement after the markets closed, Toronto- and Tampa-based Cott said its DS Services subsidiary would be the new home for the iconic Arkansas natural spring water brand.
Mountain Valley has been bottling local spring water continuously since 1871, with one production facility in Hot Springs and four protected and owned springs in the Ouachita Mountains with excess capacity to supply long-term demand.
“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,” said Dave Muscato, President – DS Services.
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.
According to a press release, Mountain Valley has grown revenue in the past three years from $39 million to more than $50 million.
“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,” said Tom Harrington, Cott’s head of route based services and incoming CEO.
Cott Corp. is a water, coffee, tea, extracts and filtration service company providing North American and European home and office bottled water delivery. Its platform reaches over 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.