Cott To Sell S&D Coffee And Tea To Westrock Coffee For $405 Mln - Quick Facts

(RTTNews) - Cott Corp. (COT, BCB.TO) said Friday it has agreed to sell S&D Coffee and Tea to Westrock Coffee Company, LLC for $405 million on a debt free and cash free basis, subject to a customary working capital adjustment.

The sale is part of Cott's transition into a pure-play water solutions provider. The transaction is expected to close in the first quarter of 2020.

S&D has provided beverages since 1927. The business is a provider of custom coffee roasting and a 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.

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.

"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," said Tom Harrington, Cott's Chief Executive Officer.