Stock Monitor: Crystal Rock Holdings Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 15, 2018 / Active-Investors.com has just released a free research report on Cott Corp. (NYSE: COT). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=COT as the Company's latest news hit the wire. On February 13, 2018, the Company disclosed that it has signed an agreement to acquire Crystal Rock Holdings, Inc. (NYSE: CRVP) ("Crystal Rock"). The all-cash transaction is valued approximately $35 million and has been approved by the Board of Directors of both companies. The deal is expected to expand Cott's business in the home and office water delivery and coffee services segment. Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Cott and Crystal Rock Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
In January 2018, the Company completed the sale of its traditional beverage manufacturing business to Refresco for $1.25 billion. The acquisition of Crystal Rock is in-line with the Company's strategy of focusing on its core business as route-based services provider in water, coffee, tea, extracts and filtration solutions.
Terms of the acquisition
As per the terms of the agreement, Cott has approved payment to Crystal Rock's shareholders for $0.97 cash for each Crystal Rock's share they hold. All outstanding Crystal Rock's shares will be acquired by a wholly-owned subsidiary of Cott via a tender offer at $0.97 per share. The completion of the tender offer is subject to certain conditions including the minimum tender of a majority of outstanding shares of Crystal Rock's common stock on a fully diluted basis and other customary conditions. Once the tender offer is completed, the wholly-owned subsidiary of Cott will merge with and into Crystal Rock. This merged entity will then become a wholly-owned subsidiary of Cott. Any eligible shares which are not tendered will be treated as cancelled and will have the right to receive $0.97 in cash for each share. Once the transaction is completed, the shares of Crystal Rock will stop trading on the New York Stock Exchange, where they are currently listed.
Cott has entered into a support agreement with nearly 50.8% of Crystal Rock's shareholders who have agreed to tender their shares to Cott's tender offer.
The deal is expected to close in March 2018, subject to fulfilment of the conditions to the tender offer and other closing conditions. Cott has intimated that it would share pertinent information on the financial impact and other details of the acquisition once the transaction is completed.
Commenting on the strategic acquisition, Jerry Fowden, CEO of Cott, said:
"The Crystal Rock acquisition is another positive step in our stated strategy to pursue acquisitions in the higher margin home and office water delivery and coffee services categories, where we believe our platform, operating strength, and synergies can be leveraged."
Tom Harrington, CEO of DS Services, a wholly-owned subsidiary of Cott, stated:
"We are very excited about strengthening our business in the New York and New England high density markets and firmly believe that our proven track record of integrating companies onto our platform will result in improved performance within our operations in the Northeastern United States."
Peter Baker, CEO of Crystal Rock, added:
"The shareholders of Crystal Rock will be benefiting from the premium paid over the recent trading price of the shares. In addition to this, given the shared corporate culture of the two companies, our customers will continue to receive best in class service in the northeast market."
About Crystal Rock Holdings, Inc.
Crystal Rock operating through its subsidiary Crystal Rock LLC, markets and distributes water and coffee service, office supplies, refreshment beverages, and other break room items to the commercial office and at home markets throughout the Northeast. Watertown, Connecticut-based Crystal Rock is a 100-year-old company that bottles and distributes natural spring water under the Vermont Pure® brand, purified water with minerals added under the Crystal Rock® Waters label and it roasts and packages coffee under its Cool Beans® brand. The Company launched the Crystal Rock Office® brand in 2010 which features traditional office supplies, break room items, furniture and janitorial and sanitation products. Most of the Company's sales are derived from a route distribution system that delivers water in 3- to 5-gallon reusable, recyclable bottles, and coffee in fractional packs or pods.
About Cott Corp.
Cott is a leading route based North American and European water, coffee, tea, extract and filtration solution service provider. It has the largest volume-based national presence in the North American and European home and office bottled water delivery industry and a leader in custom coffee roasting and blending of iced tea for the US foodservice industry. It has over 2.3 million customers or delivery points with over 2,500 direct-to-consumer routes across North America and Europe supported by strategically located sales and distribution facilities and fleets, as well as wholesalers and distributors. This enables the Company to efficiently service residences, businesses, restaurant chains, hotels and motels, small and large retailers, and healthcare facilities.
Stock Performance Snapshot
February 14, 2018 - At Wednesday's closing bell, Cott's stock declined 1.34%, ending the trading session at $15.48.
Volume traded for the day: 900.02 thousand shares.
Stock performance in the previous six-month period - up 0.39%; and past twelve-month period - up 43.60%
After yesterday's close, Cott's market cap was at $2.17 billion.
The stock has a dividend yield of 1.55%.
The stock is part of the Consumer Goods sector, categorized under the Beverages - Soft Drinks industry. This sector was up 1.0% at the end of the session.
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