Cott Corporation, a Canada-based private label beverage manufacturer, has completed the acquisition of US-based water and coffee producer DSS Group for $1.25bn.

A definitive merger agreement was signed between both the companies in November 2014.

DSS Group, which is the parent company of DS Services of America, manufactures water and coffee direct-to-consumers in the US.

Following the acquisition, it will now operate as a subsidiary of Cott.

This purchase will help Cott widen its beverage portfolio into new and growing markets. This portfolio includes water and coffee home and office delivery services, water filtration services, and retail services.

Cott CEO Jerry Fowden said: "The DSS acquisition accelerates Cott’s diversification strategy and shifts the company from a primarily CSD and shelf stable juice beverage business to a diversified beverage provider across multiple channels with improved margins and growth outlook.

"We believe this acquisition will provide us with the resources and scale necessary to drive our future success and build shareowner value."

With the merger, Cott will secure an additional national direct-to-consumer distribution channel with the 2,100 customer routes operated by DSS.

Earlier, the company said that it expects the acquisition to provide cost and revenue synergies of approximately $25m a year by the end of 2017.