Cott Corporation, a US beverage and food service company, is divesting its S&D Coffee and Tea to Westrock Coffee Company, for $405 million in an all-cash deal as part of its transition towards becoming a pure-play water solutions provider.
S&D Coffee and Tea is a North Carolina-based beverage supplier which has been in the business since 1927. The company provides custom coffee roasting and blends iced teas for food service and convenience stores across the US.
The coffee company also offers infused drinks, syrups, juices, and cappuccinos.
Tom Harrington – Cott Corporation CEO said: “The S&D team is known for its dedication, hard work and passion for quality beverages and first-class service to its customers. That commitment is evident to anyone who visits S&D or works with them, and we are confident S&D will continue to thrive under its new ownership.
“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.”
Based in Arkansas, Westrock Coffee offers coffee sourcing and financing, roasting, packaging, supply chain management, and distribution services to customers across the world.
According to Westrock Coffee, the acquisition of S&D Coffee and Tea will create a top integrated coffee company that will address the needs of the retail, restaurant, convenience store, and hospitality sectors.
Scott Ford – Westrock Coffee Co-founder and CEO said: “This strategic combination will create the nation’s premier coffee, tea, and extract supplier that is capable of serving the most complex and demanding customers across the country and around the world.
“We intend to use the scale of the new company to offer the most innovative beverage solutions with competitive pricing to our global clients while simultaneously providing a premium price to our farmer partners at origin. Our unmatched commitment to customer service, product quality, and our industry-leading sustainability and transparent sourcing practices will remain a cornerstone of our business.”
Post-acquisition, Westrock Coffee and S&D Coffee and Tea will continue to work under their current brand names with plans to continue expansion in the future.
The combined coffee company will employ nearly 1,700 people across the world and will roast, grind, and package over 220 million pounds of coffee annually.
Westrock Coffee acquisition of S&D Coffee and Tea is expected to be wrapped up in Q1 2020 once it secures regulatory approval and meets other customary closing conditions.