AdEdge Water Technologies' Rich Cavagnaro and Sahar Fathordoobadi discuss the importance of chemistry and how it serves as the basis of everything...
Groupe Danone of France acquired its Canadian rival, Sparkling Spring Water Holdings, Ltd., in a plan to move deeper into office-delivery and home-delivery water markets.
Terms of the acquisition were not disclosed. However, The Wall Street Journal reported that when the agreement was announced in November, Sparkling Spring was likely to fetch $300 million to $400 million, based on deals for similar companies.
Sparkling Spring, based in Dartmouth, Nova Scotia, is a producer and distributor of bottled water for home and office delivery. The business has annual revenue of more than $100 million, employs about 1,100 and owns 210,000 water coolers for rent.
The acquisition is part of Danone's drive to strengthen its position in a profitable segment of the U.S. water business and overseas. The deal also adds to Danone's global reach.
While lower-profile than the retail business, which features such brands as Evian and Dannon, home and office delivery has become a highly lucrative segment of the beverage industry and is poised for consolidation.