Beverage distributor Cott Corp. (NYSE: COT) agreed to buy coffee machine provider Eden Springs from Rhone Capital and management for $525 million. The acquisition is part of Cott’s diversification strategy while it expands the company’s presence in Europe.
Cott produces private label beverages including: soft drinks, waters, juices and sports drinks. The company distributes to 60 percent commerical customers and 40 percent residential.
Eden Springs, based in Préverenges, Switzerland, distributes coffee machines and water coolers to more than 800,000 homes and offices in Europe. CEO Raanan Zilberman will continue to lead Eden Springs. The transaction will help the company grow organically and through acquisitions.
“The acquisition is a great step in Cott’s strategy to pursue opportunities in the home and office water delivery, office coffee and tea services and filtration categories where we believe our platform, operating strength and synergies can be leveraged,” says Cott CEO Jerry Fowden.
Eden Springs follows up Cott’s 2014 purchase of DS Services of America. That deal expanded Cott’s services beyond soft drinks and into bottled water and coffee.
Cott, which is located in Toronto and Tampa, Florida, is not the only consumer strategic buyer that is diversifying. The Clorox Co. (NYSE: CLX) acquired probiotics maker Renew Life Holdings Corp. from Swander Pace Capital for about $290 million. Clorox identifies itself as a health and wellness company and is looking to further expand into the sector through acquisitions.
Evercore Partners Inc. (NYSE: EVER) is advising to Cott along with Deutsche Bank Securities Inc., JPMorgan Chase & Co. (NYSE: JPM) and Wells Fargo & Co. (NYSE: WFC), which are also providing financing.