Multinational route-based business firm Cott has entered a definitive agreement to acquire office and home refreshment products provider Crystal Rock Holdings for around $35m.

Approved by both companies’ board of directors, the transaction values Crystal Rock at $0.97 per share in cash.

Crystal Rock Holdings markets and distributes water and coffee services, office supplies and refreshment beverages through its subsidiary Crystal Rock.

“The Crystal Rock acquisition is another positive step in our stated strategy to pursue acquisitions in the higher margin home and office water delivery and coffee services categories.”

Cott CEO Jerry Fowden said: “The Crystal Rock acquisition is another positive step in our stated strategy to pursue acquisitions in the higher margin home and office water delivery and coffee services categories, where we believe our platform, operating strength and synergies can be leveraged.”

As per the merger agreement, Cott’s affiliate will commence a tender offer to acquire all of the outstanding shares of Crystal Rock’s common stock.

Expected to close next month, the transaction is subject to various tender offer conditions.

Following the merger, Crystal Rock will be a wholly-owned subsidiary of Cott and any invalid tendered shares will be cancelled and converted.

Crystal Rock’s shareholders holding 50.8% of the company’s outstanding shares have supported the merger agreement and have agreed to tender their shares in the tender offer.

Cott has a national presence in North America and Europe, dealing in custom coffee roasting, blending of iced tea and extract solutions for the US foodservice industry.