The US food distributor Amcon Distributing has agreed to pay US1.3m to acquire the Trinity Springs bottled water company to add to its small but growing beverage business.

The Omaha-based Amcon will acquire Trinity Springs Ltd.'s bottling plant, equipment, water sources and brand name. The deal does not include Trinity shares, however.

According to a US Securities and Exchange Commission filing, Amcon will also hand to Trinity promissory notes worth US$3.3m.

Amcon's Trinity assets will become a new holding company, TSL Acquisition Corp.
Amcon will pay Trinity a royalty of $0.03 per litre of water extracted from its springs, or at least US$206,400 in the first year and US$288,000 in subsequent years, according to the SEC filing.