S&D Coffee Inc. has accepted an offer made by the Cott Corporation to be acquired.
Following the completion of the proposed transaction, S&D will be a subsidiary of Cott, still operating under the S&D Coffee & Tea name. Ron Hinson, at almost 38 years with the company, will remain president and CEO of S&D, and the management team will assume the same scope and responsibilities. Cott, a global, multi-beverage leader, will enable further development and acceleration of S&D’s business model.
S&D was first created by J. Roy Davis, Sr. and Lawrence Switzer to provide fresh roasted coffee to local and regional grocery stores back in 1927. Starting in 1965, after his father’s death, J. Roy Davis, Jr. shifted the company toward independent restaurants that were dotting the landscape to capitalize on this growing demand for quality coffee and iced tea away from home. Over the years S&D grew from a small, family-owned business to a private enterprise that is distinguished as the largest coffee and tea manufacturer and supplier to restaurants and convenience stores in the U.S.
“The Davis Family, who founded S&D, deserves our gratitude for all they have done for our company, community, and industry,” Hinson says. “Generations of people have benefitted from their vision, leadership, and generosity.”
S&D’s presence in the Concord, North Carolina, community will remain unchanged where it houses state-of-the-art facilities and a dedicated employee base. The company anticipates making more investments in infrastructure and the workforce as business growth demands.
Cott Corporation, a Canadian company headquartered in Tampa, Florida, is one of the world's largest producers of beverages on behalf of retailers, brand owners, and distributors and one of the leading providers in the direct-to-consumer beverage services industry. Cott has global businesses in the office coffee services, direct to home and office water delivery, and retail segments. Their broad product portfolio includes coffee, brewed tea, bottled water, carbonated soft drinks, shelf-stable juice, clear, still and sparkling flavored waters, energy and sports drinks, ready-to-drink teas, as well as micro-ground coffee, hot chocolate, and cereals. Cott has significant filling, packaging, delivery, and service capabilities.
Prior to the S&D acquisition, Cott employs more than 12,500 people, has operations in 21 countries around the world, and is a company of over $3.3 billion in revenue.
“We could not be more pleased by what the future holds for our stakeholders, including employees and customers, due to this new strategic combination,” Hinson says. “The synergies S&D has with Cott, whether technology, supply chain, product, distribution channels, or markets, are abundantly clear.”
“The acquisition of S&D enables us to become a leading player in the coffee and tea categories due to their excellence as a manufacturer and their prominence as an elite supplier in the restaurant and convenience retail segments,” says Jerry Fowden, CEO of Cott. “With S&D now part of the Cott family, we can further leverage cost efficiencies and growth opportunities across all the Cott companies.”
Deloitte Corporate Finance LLC and 7 Mile Advisors acted as joint financial advisors to S&D in connection with the acquisition by Cott.