Cott To Buy Eden Springs In Europe For EUR 470 Mln - Quick Facts

(RTTNews) - Cott Corp. (COT, BCB.TO) announced Tuesday that it has entered into a definitive share purchase agreement to acquire Eden Springs, a European direct-to-consumer services provider. The purchase price is approximately 470 million euros, on a debt and cash free basis.

Eden is held by investment funds affiliated with Rhone Capital and specializes in home and office delivery water, office coffee services and filtration. Eden is a scale business that generated over 360 million euros in pro forma revenues during 2015.

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.

In line with Cott's strategy, the acquisition is expected to be accretive to adjusted free cash flows in its first full year and provide a cash on cash IRR above its cost of equity.

The acquisition, which is expected to close in the third quarter of 2016, is subject to certain customary closing conditions.