US soft drink manufacturer Cott Corp. announced Tuesday that it has entered into a definitive share purchase agreement to acquire Eden Springs, the parent company of Israeli mineral water producer Mey Eden. The purchase price is approximately $535 million, on a debt and cash free basis.
Eden Springs has a customer base consisting of more than 800, 000 business and private customers in 18 countries. The company specializes in home and office delivery water, office coffee services and filtration. It has over 3, 200 employees, with business in Israel and Europe, including 28 production plants, 150 branches, and a fleet of over 1, 150 service vehicles.
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Eden is held by investment funds affiliated with Rhone Capital and Eden is a scale business that generated over 360 million euros in pro forma revenues during 2015. The acquisition will bring Eden Springs’ business turnover to $3.5 billion.
The merged company will be the world’s leading water and coffee solutions platform.
Cott said the acquisition is consistent with its stated diversification strategy to expand in HOD water, coffee and tea services as well as filtration services where its platform, operating strength and potential synergies can be leveraged.
The acquisition, which is expected to close in the third quarter of 2016, is subject to certain customary closing conditions.
Eden Springs CEO Raanan Zilberman will continue to lead and develop the company, with a focus on investments in organic growth, development of new products, and acquisitions of companies in Europe and Israel whose business complements that of Eden Springs.
Zilberman said, “Eden is a successful business and a natural fit with the wider Cott family. This transaction is an important step as we strengthen our international capability and develop our market leading position.”
