A subsidiary of Arrowhead Water Products Ltd. has signed a deal to buy Pure Water Shops, which produces and sells bottled water in Calgary.
Arrowhead Spring Water said Friday it will pay about $800,000 in cash, shares, warrants and a promissory note for the business, which operates under the names Pure Water Shops and Eau Claire Springs.
The acquisition should boost Arrowhead's revenues by $720,000 per year, the company said.
"The acquisition of PWS is an important part of Arrowhead's strategy as it removes a competitor, adds additional retail distribution and will provide more effective route density," Arrowhead said in a release.
Arrowhead generates the majority of its revenues through the sale and rental of water coolers and the delivery of spring, distilled and drinking water across Alberta. It operates plants in Edmonton and Calgary and Dawson Creek, B.C.