Cott Corp. subsidiary acquires Mountain Valley for $78.5M
Cott Corp. announced that DS Services, a Cott Corp. subsidiary, acquired The Mountain Valley Spring for $78.5M in cash from Great Range Capital. Mountain Valley is an American brand of spring and sparkling water. It has been bottling in glass continuously since 1871, with one production facility in Hot Springs, Arkansas, and four protected and owned springs in the Ouachita Mountains with excess capacity to supply long-term demand. Channels of business include HOD, the natural food channel, on-premise, e-commerce and strategic contract packing. 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. Mountain Valley has grown revenue from approximately $39M in 2015 to over $50M in estimated sales for 2018, with high single digit growth expectations for 2019. The purchase price was $78.5M, on a debt and cash free basis, representing approximately 8x estimated year two post-synergy adjusted EBITDA. Cott financed the transaction through a combination of cash on hand and drawing on its asset based lending facility. The transaction closed. Additional financial and integration information relating to the acquisition of Mountain Valley will be provided during Cott's Q3 earnings release conference call scheduled for November 8.