Cott Announces Acquisition of Mountain Valley Spring Company
Oct 15, 2018
Mountain Valley is a fast-growing American brand of spring and sparkling water and is one of the most recognized home and office distribution (“HOD”) brands in the United States. It has been bottling in glass continuously since 1871, with one production facility in
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
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The purchase price was
In addition to this press release, a document has been posted on the Cott website (www.cott.com) under events and presentations which provides additional information on Mountain Valley.
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Cott is a water, coffee, tea, extracts and filtration service company with a leading volume-based national presence in the North American and European home and office bottled water delivery industry and a leader in custom coffee roasting, blending of iced tea, and extract solutions for the
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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, expected growth, synergies and contribution to Cott’s performance, and the potential impact the acquisition will have on Cott and related matters. 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: changes in estimates of future earnings and cash flows; expected synergies and cost savings are not achieved or achieved at a slower pace than expected; integration problems, delays or other related costs; retention of customers and suppliers; and unanticipated changes in laws, regulations, or other industry standards affecting the companies.
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
EXHIBIT 1 | ||||
SUPPLEMENTARY INFORMATION – NON-GAAP – ACQUISITION OF MOUNTAIN | ||||
VALLEY SPRING COMPANY – YEAR 2 POST-SYNERGY EBITDA MULTIPLE | ||||
(in millions of | ||||
Unaudited | ||||
Year 2 | ||||
Net income (1,2) | ~$ 2.8 | |||
Interest expense and income tax expense (1) | ~ 1.0 | |||
Depreciation and amortization (1) | ~ 4.5 | |||
EBITDA (1,2) | ~$ 8.3 | |||
Synergies (3) | ~ 1.5 | |||
Post-synergy EBITDA | ~$ 9.8 | |||
Purchase Price | ~$ 78.5 | |||
Post-synergy EBITDA multiple | ~ 8x | |||
(1) Before purchase accounting adjustments | ||||
(2) Excludes acquisition and integration costs | ||||
(3) Year 2 total synergies |
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