The Australian soft drinks bottler, Coca-Cola Amatil (CCA), currently engaged in a takeover bid for the bottled water company, Neverfail, is making another foray into the water market with the acquisition of the privately-owned bulk water company, Peats Ridge Spring.
The move for Peats Ridge Spring comes 10 days before the expiry of CCA’s A$214m bid for Neverfail which has been viewed as hostile by the target company.
CCA’s managing director, Terry Davis, said the acquisition of Peats Ridge Spring would increase its water bottling capacity by over 50%, and will make a contribution to earnings in the first year. “This is a small bolt-on acquisition that is consistent with Coca-Cola’s strategy of broadening our offerings in non-carbonated beverages,” he said.
The purchase price has not been revealed but analysts have suggested CCA will be paying between A$10m and A$15m for Peats Ridge.
