Beverage firm sells coffee, tea operations for $405 million

TAMPA — Cott Corp. has sold its S&D Coffee & Tea division for $405 million to North Little Rock, Ark.-based Westrock Coffee Co. LLC. The deal is expected to close in the first quarter, subject to regulatory approval.

S&D, according to a press release, dates back to 1927. It has since become a market leader in coffee and tea for foodservice and convenience store clients. It also produces extracts and ingredients.

"The S&D team is known for its dedication, hard work and passion for quality beverages and first-class service to its customers,” Cott CEO Tom Harrington states in the release. “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."

On Jan. 13, Cott announced that it had agreed to acquire Primo Water Corp. in a transaction valued at $775 million. Primo is a supplier of water dispensers, purified bottled water and self-service refill drinking water. 

“The combination of the sale of S&D, along with the acquisition of Primo Water Corp., positions Cott to be a pure-play water solutions provider with financial metrics more in line with our water peers," Harrington adds in the release. 

Cott (NYSE: COT) reported gross revenue of $2.27 billion in 2018, up from $1.62 billion in 2017.