TORONTO (S&P Global Ratings) Aug. 4, 2016--S&P Global Ratings today said that its ratings on Cott Corp. (B/Stable/--) are not affected by the company's announcement that it will acquire S&D Coffee Inc., a U.S.-based coffee and tea provider, for US$355 million. We believe the acquisition is consistent with Cott's strategy of diversifying into growing, higher-margin beverage categories, and reducing exposure to declining carbonated soft drinks, as well as competitively strong big-box retailers. The S&D acquisition, along with Cott's previous acquisitions of Eden Springs International S.A. and DS Services of America Inc., improves the company's position in the U.S. and European water, coffee, and tea services markets. Synergies of about US$12 million are primarily through back-office consolidation and lower procurement costs
