Cott Corp., a Canadian producer of private-label soft drinks and ice teas, agreed to buy DSS Group Inc. for about $1.25 billion to expand into the new markets of water and coffee home and delivery services.

The agreement includes the assumption of debt and the issuance of preferred shares to Crestview Partners LP and other selling shareholders, Mississauga, Ontario-based Cott said in a statement today. The purchase price is about 7.1 times DSS’s estimated 2014 adjusted earnings before interest, taxes, depreciation and amortization, according to the statement.

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