Israel's Eden Spring Is Acquired by Canada’s Cott Corporation
Although Israeli consumers regard Mei Eden as a strictly local brand of bottled water, the company operates in 18 other countries in Europe.
Cott Corporation, the Canadian beverage company, said on Tuesday it had acquired Eden Springs, the company that owns the Mei Eden bottled water brand in Israel, to expand its home and office water delivery and office coffee services, for 470 million euros ($533 million).
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Although Israeli consumers regard Mei Eden as a strictly local brand of bottled water, the company operates in 18 other countries in Europe providing homes and offices with water and coffee served through dispensers, an area the company has sought to expand.
“The acquisition broadens the distribution platform of Cott’s existing UK/European business by providing access to a direct-to-consumer route distribution platform in Europe serving over 800,000 homes and offices,” a statement from Cott said.
Cott said seller Rhone Capital, a New York-based private equity firm, would be paid the full amount in cash and would not be taking on any debt from Eden Springs. Rhone bought Eden Springs three years ago for 70 million euros when the company was carrying 170 million euros in debt.
Cott said Eden Springs generated 360 million euros in pro forma revenue last year with a distribution platform in Europe serving over 800,000 homes and offices and employing 3,200 people. It generated 60 million euros in earnings before interest, taxes, depreciation and amortization, or Ebitda. The acquisition is expected to close in the third quarter.