TAMPA, FL, Jan. 31, 2020 /PRNewswire/ - Cott Corporation
(NYSE:COT; TSX:BCB) (the "Company" or "Cott") continues its
transition into a pure-play water solutions provider with today's
announcement that it has entered into a definitive agreement
pursuant to which Cott will sell S&D Coffee and Tea ("S&D")
to Westrock Coffee Company, LLC ("Westrock Coffee") for
$405 million on a debt free and cash
free basis, subject to a customary working capital adjustment.
S&D has provided quality beverages since 1927 and is a U.S.
market leader in custom coffee roasting and the largest blender of
iced teas for food service and convenience stores in the United States. S&D is also a leader in
the high growth category of extracts and ingredients.
"The S&D team is known for its dedication, hard work and
passion for quality beverages and first-class service to its
customers. That commitment is evident to anyone who visits S&D
or works with them, and we are confident S&D will continue to
thrive under its new ownership," commented Tom Harrington, Cott's Chief Executive Officer.
"The combination of the sale of S&D, along with the recent
announcement of Cott's acquisition of Primo Water Corporation,
positions Cott to be a pure-play water solutions provider with
financial metrics more in line with our water
peers," continued Mr. Harrington.
The transaction is expected to close in the first quarter
of 2020 and is subject to certain customary closing conditions
including regulatory approval. In conjunction with the
transaction, BBH Capital Partners, a private equity strategy of
Brown Brothers Harriman & Co., will provide acquisition capital
alongside Westrock Coffee's existing investors, including The
Stephens Group, LLC.
BMO Capital Markets Corp. acted as exclusive financial
advisor to Cott while Drinker Biddle & Reath
LLP acted as legal advisor. Wachtell, Lipton, Rosen & Katz acted as legal
advisor to Westrock Coffee.
ABOUT COTT CORPORATION
Cott is a water and filtration service company with a leading
volume-based national presence in the North American and European
home and office delivery industry for bottled water, as well as a
leading position in filtration. Our platform reaches over 2.5
million customers across North
America and Europe and is
supported by strategically located sales and distribution
facilities and fleets, as well as wholesalers and
distributors. This enables us to efficiently service
residences, businesses, hotels and motels, small and large
retailers and healthcare facilities.
ABOUT WESTROCK COFFEE
Westrock Coffee is a farmer-focused, fully integrated company
providing coffee sourcing and financing, supply chain management,
roasting, packaging, and distribution services to customers around
the world. The company has offices in seven countries which market
coffee from more than 20 origin countries impacting over one
million members of smallholder farming households. Through Westrock
Coffee's US-based roasting operations, the company roasts, grinds,
packages, and delivers branded and private label coffee in bags,
fractional packs, and single serve cups.
Safe Harbor Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 conveying
management's expectations as to the future based on plans,
estimates and projections at the time Cott makes the statements.
Forward-looking statements involve inherent risks and uncertainties
and Cott cautions you that a number of important factors could
cause actual results to differ materially from those contained in
any such forward-looking statement. The forward-looking statements
contained in this press release include, but are not limited to,
statements related to the completion of the transaction on the
terms proposed, the anticipated timing of the transaction, the
potential impact the acquisition will have on Cott and related
matters, other pending transactions, and the execution of our
strategic priorities. The forward-looking statements are based on
assumptions regarding management's current plans and estimates.
Management believes these assumptions to be reasonable but there is
no assurance that they will prove to be accurate.
Factors that could cause actual results to differ materially
from those described in this press release include, among others:
the satisfaction of the conditions to the transactions and other
risks related to the completion of the transaction and actions
related thereto; and the effect of economic, competitive, legal,
governmental and technological factors on Cott's business.
The foregoing list of factors is not exhaustive. Readers are
cautioned not to place undue reliance on any forward-looking
statements, which speak only as of the date hereof. Readers are
urged to carefully review and consider the various disclosures,
including but not limited to risk factors contained in Cott's
Annual Report on Form 10-K and its quarterly reports on Form 10-Q,
as well as other filings with the securities commissions. Cott does
not undertake to update or revise any of these statements in light
of new information or future events, except as expressly required
by applicable law.
Website: www.cott.com
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SOURCE Cott Corporation