Capitalizing on the key strengths of each, Suntory and Groupe Danone (DA) have agreed to create a joint venture which will operate the combined businesses of their subsidiaries, Suntory Water Group and the home office delivery business of Danone Waters of North America.
The joint venture will create one of the largest providers of home and office delivered water (HOD), with sales in excess of $800 million in regions throughout the United States.
Under the terms of the agreement, each company will have an equal ownership stake in the venture. The new management team will be composed of executives from both firms' existing water operations, as well as new management, which will be announced in the near future.
The closing of the transaction is subject to the satisfaction of customary conditions and is expected to close this fall.
By streamlining operations, the venture plans to save costs, allowing for improvements in product quality and pricing, while extending value-added services to residential, office and retail customers.
The joint venture will have the nation's largest distribution network, allowing it to better serve corporate clients by catering to more of each client's water delivery needs.
Source: PR Newswire
