Alkaline Water Co., known for its premium bottled alkaline drinking water products sold under the brand name Alkaline88, acquired AQUAhydrate in an all-stock transaction.
Why It's Important
Alkaline Water expects the deal to offer multiple financial and strategic benefits.
The company has a pipeline of brand extensions and new products, including CBD products and alternative packaging options.
The acquisition should better position the new company to target multiple products to each brand's unique target market, according to Alkaline Water.
AQUAhydrate has high-profile board members including Sean "Diddy" Combs and actor Mark Wahlberg, along with a social media reach of 74 million people.
"When Sean and I first got involved in the business, our vision was to build a lifestyle company focused on health and wellness, and that's what we've done," Wahlberg said in a press release.
"The AQUAhydrate and Alkaline88 brands align well and will support exciting innovations in flavors, sparkling and CBD products."
Alkaline Water said it expects the combination of the two companies to result in greater institutional investor interest and coverage from Street analysts.
The company said it expects to generate synergies by consolidating its sales force and offering retail partners one point of contact for the two companies. The combined revenues for the new company are expected to come in above $65 million in fiscal 2020.
Alkaline Water shares were trading 1.3% higher at $2.33 at the time of publication Tuesday.
Social CBD Debuts: 'We Have Massive Reach In Over 10,000 Retailers'
UK Medical Cannabis, CBD Company Cannaray Announces Series A Funding
See more from Benzinga
- To Celebrate Alibaba's Birthday, Jack Ma 'Returned To Where It All Started'
- What To Make Of Wendy's Breakfast Expansion
- Wendy's Falls After Revising 2019 Guidance
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.