Beverage maker Cott buying water and coffee provider DSS Group to expand beyond supermarket

Cott Corp., a Canadian beverage maker, plans to expand into water and coffee delivery by buying privately held DSS Group Inc.

The two companies value the deal at about $1.25 billion when debt is included. The acquisition is expected to close by the end of January.

Cott makes sodas, energy drinks and juices under private labels sold at supermarkets. DSS Group, based in Atlanta, is the parent company of DS Services of America, which delivers water and coffee to homes and offices.

The deal will help Cott expand its business beyond supermarkets, Cott CEO Jerry Fowden said in a statement.

U.S.-traded shares of Cott added 73 cents, or 12 percent, to $6.79 in morning trading. The stock has ranged from $5.95 to $8.74 in the past 12 months.