Dive Brief:
- Cott Corp., a maker of private label sodas for retailers, will buy DSS Group for $1.25 billion.
- DSS is the parent of DS Services of America, an Atlanta-based company that delivers bottled water and coffee to offices under brand names such as Belmont Springs and Javarama.
- Cott, based in Mississauga, Ontario, has been acquiring companies at a modest pace in recent years, adding Suso Drinks in 2012 and Cliffstar in 2010.
Dive Insight:
A deal like this sure looks like a winner for Cott, giving it access to an entirely new market for its soft drinks. Food Dive expects that every office in North America that gets its water coolers and coffee machines served by DS Services will soon also be offering private label sodas.
This deal also gives Cott control of arguably one of the coolest domain names on the Internet: water.com.