US-based bottled drinking water producer The Alkaline Water Company (Alkaline) has signed a definitive merger agreement with premium bottled water manufacturer and distributor AQUAhydrate.

Under the agreement, Alkaline will acquire all outstanding and issued shares of common and preferred stock of AQUAhydrate through an all-stock transaction.

The Alkaline Water Company president and CEO Richard Wright said: “The acquisition of AQUAhydrate is an unprecedented opportunity that allows The Alkaline Water Company to cement itself as a leader in various multi-billion-dollar segments which include premium water, functional & wellness and the CBD market.

“We believe that post-acquisition, we will attract a more diverse consumer base, offer product differentiation and innovative brand extensions to become a major independent force in the beverage sector.

“We have identified the business synergies associated with the merger that will immediately impact and reduce costs associated with operations. This allows us to accelerate our sales channels through cross-promotion of both brands based on our distinct consumer bases and distribution channels.”

The deal should prove beneficial for the two companies and to their respective shareholders.

Through the merger, the companies are expected to establish a unique positioning in the capital markets, extending their brands and cross-selling opportunities.

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Additionally, it is expected to enable a national distribution of products to the leading retail markets.

Completion of the deal is also subject to certain closing conditions.

The Alkaline Water Company chairman Aaron Keay said: “This is an extremely exciting time for all The Alkaline Water Company stakeholders, as we welcome a new shareholder base that includes significant celebrity investors, partners, brand ambassadors and board members, to create a leading national presence in the premium water category with two powerful brands: Alkaline88 and AQUAhydrate.”

Last February, The Alkaline Water Company reported the availability of its bottled drinking water Alkaline88 at select retailers in a 1.5l bottle and a 1l 6-pack.