US-based soft drinks company Keurig Dr Pepper (KDP) has signed a definitive agreement to acquire beverage maker Core Nutrition in a deal valued at $525m.

Established in 2015, Core Nutrition’s portfolio includes nutrient-enhanced bottled water Core Hydration and Core Organic, which has been certified organic by the US Department of Agriculture (USDA).

Core Nutrition’s two beverage products are currently being distributed by KDP.

KDP’s CEO Bob Gamgort said: “Core has been a valued and successful allied brand partner, and we are pleased that this on-trend beverage will become part of our owned KDP family of brands.

“Our sales and distribution capabilities have helped fuel significant growth for the Core portfolio. Through this transaction, we intend to realise the full growth potential for the business.”

“We created Core to meet the increasing desires for innovative, enhanced water offerings with functional benefits for today’s modern consumer.”

The acquisition will be funded using KDP common stock, net profit of the company’s current equity investment and certain other contractual adjustments.

Core Nutrition founder Lance Collins said: “We created Core to meet the increasing desires for innovative, enhanced water offerings with functional benefits for today’s modern consumer.

“KDP has been an outstanding partner for Core and I am certain that, under its ownership, Core will continue to see tremendous long-term success.”

The transaction is subject to customary closing conditions and is expected to be completed by the end of this year.

Upon completion, KDP will continue to distribute Core Hydration and Core Organic through its direct store delivery network and independent distributor network.