7 Mile Advisors Acts As Sell-Side Advisor To S&D Coffee, Inc. (S&D) on its sale to Cott Corporation (COTT)

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CHARLOTTE, NC -- 7 Mile Advisors (7MA) acted as financial advisor to Concord, North Carolina-based S&D Coffee, Inc. (S&D) on its sale to Cott Corporation (Cott). A leading manufacturer and distributor of coffees, teas, specialty beverages, extracts and ingredients to the foodservice industry, S&D engaged 7MA to explore a strategic sale of the company. The deal closed on Aug. 11, 2016.

 

S&D will be a subsidiary of Cott, still operating under the S&D Coffee & Tea name. Ron Hinson, 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. S&D will continue to innovate and deliver the finest quality coffee, tea and liquid extracts with unparalleled service. This new chapter in the storied, 89-year company history will undoubtedly be very exciting as Cott, a global, multi-beverage leader, will enable further development and acceleration of S&D’s successful 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 through the skillful efforts, hard work and sacrifice of many including Alan Davis and Rhyne Davis, the third generation of Davis’ to help guide the business, S&D grew from a small, family-owned business to a formidable private enterprise – distinguished as the largest coffee and tea manufacturer and supplier to restaurants and convenience stores in America.

Hinson commented, “The Davis Family, who founded S&D, deserves our gratitude for all they have done for our company, community and industry. Generations of people have benefitted from their vision, leadership and generosity.” Hinson further said, “We could not be more pleased by what the future holds for our stakeholders, including employees and customers, due to this new strategic combination. The synergies S&D has with Cott, whether technology, supply chain, product, distribution channels or markets, are abundantly clear. 7MA served as a trusted advisor throughout the process.”

S&D’s presence in the Concord 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. Please read more below in “About Cott.”

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, publicly listed on the New York Stock Exchange (COT) as well as the Toronto Stock Exchange (BCB.TO).

About S&D Coffee, Inc.:

Founded in 1927 and headquartered in Concord, North Carolina, S&D is the largest coffee and tea supplier to restaurants in the United States. S&D offers over 3,000 different products and serves over 100,000 customers through national distribution and direct store delivery. S&D consistently produces high-quality beverages utilizing state-of-the-art manufacturing and processing techniques, while effectively sourcing the finest raw ingredients for coffee and tea products. S&D possesses dedicated coffee and tea manufacturing capabilities and proprietary extracts and ingredients technology. For more information, visit www.sdcoffeetea.com.

About Cott Corporation:

With the acquisitions of DS Services of America Inc. and Eden Springs, Cott has combined leading providers in the direct-to-consumer beverage services industry with its traditional business, one of the world's largest producers of beverages on behalf of retailers, brand owners and distributors. Cott now has the largest volume-based national presence in the North American and European home and office delivery industry for bottled water and one of the five largest national market share positions in the U.S. and Europe office coffee services and filtration services industries. Cott reaches over 2.3 million customers through routes located across North America and Europe supported by national sales and distribution facilities, and fleet. Cott's broad portfolio allows it to offer, on a direct-to-consumer basis, a variety of bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers and filtration equipment. Cott has operations in the USA, Canada, Mexico, U.K., France, Spain, Portugal, Switzerland, Luxembourg, Germany, Netherlands, Denmark, Norway, Sweden, Poland, Finland, Estonia, Latvia, Lithuania, Russia and Israel. For more information, visit www.cott.com.

About 7 Mile Advisors:

7 Mile Advisors provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. 7 Mile Advisors advises on M&A and private capital transactions, and provide market assessments and benchmarking. As a close knit team with a long history together and a laser focus on our target markets, 7 Mile Advisors helps its clients sell companies, raise capital, grow through acquisitions, and evaluate new markets. All securities transactions are executed by 7M Securities, LLC, member FINRA / SIPC. For more information, including research on the M&A markets, visit www.7mileadvisors.com.