The US water business, Glacier Water Services Inc., has announced that it has reached an agreement to acquire the Water Island Inc. water company for around US$5.9m plus the assumption of certain liabilities.

The deal, which remains subject to approval by Water Island's shareholders and routine regulatory approvals, is expected to be completed in the fourth quarter.

Brian McInerney, chief executive officer of Glacier Water, said the company was excited about the acquisition of Water Island, based in the Midwest, given the company's excellent reputation and its geographical fit with Glacier's own business.

"The acquisition of Water Island also further expands Glacier's geographic reach and will deliver operational benefits in one of the fastest growing bottled water markets in the country," McInerny said. "In addition, the acquisition should accelerate Glacier's return to profitability."