The Alkaline Water Company Inc. announced today it has entered a definitive agreement to acquire premium water brand AQUAhydrate in a stock-only transaction.
Founded in 2016, AQUAhydrate markets a line of purified water that is supplemented with electrolytes and minerals and raised to pH of over 9. The brand is sold in retailers nationwide including Walmart, Target, Safeway, Rite Aid and GNC. Based in Southern California, the company also features several celebrity backers: actor Mark Wahlberg and media mogul Sean “Puffy” Combs are both investors, while fitness celebrity Jillian Michaels is an investor and the brand’s chief wellness officer.
The Scottsdale, Arizona-based Alkaline Water Co., a publicly traded company, was launched in 2012. Under the Alkaline88 brand, the company markets a variety of products, including alkaline water, energy water, flavored water and CBD-infused water.
Under the terms of the deal, The Alkaline Water Co. will acquire all shares of AQUAhydrate through a triangular merger with a new wholly-owned subsidiary. Following the closing of the deal, 18.4% of the issued stock will go to Yucaipa Companies, an investor in AQUAhydrate. Combs and Wahlberg will also receive shares from the new subsidiary.
“This is an extremely exciting time for all The Alkaline Water Company stakeholders as we welcome a new shareholder base that includes significant celebrity investors, partners, brand ambassadors and board members, to create a leading national presence in the premium water category with two powerful brands: Alkaline88 and AQUAhydrate,” stated Aaron Keay, chairman of the Alkaline Water Company, in a release.
Keay also noted that Ira Tochner of Yucaipa and Matthew Howison, of Emerald Partners, will join the company as new director nominees.
Meanwhile, Alkaline Water Co. president Richard A. Wright praised the business synergies associated with the merger, noting the opportunity to reduce costs and accelerate sales through cross-promotion of both brands.
“The acquisition of AQUAhydrate is an unprecedented opportunity that allows The Alkaline Water Company to cement itself as a leader in various multi-billion dollar segments which include premium water, functional & wellness, and the CBD market,” said Wright. “We believe that post-acquisition, we will attract a more diverse consumer base, offer product differentiation and innovative brand extensions to become a major independent force in the beverage sector.
Wahlberg also commented on the deal in the release, stating “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. The AQUAhydrate and Alkaline88 brands align well and will support exciting innovations in flavors, sparkling and CBD products.”
Combs added: “We built AQUAhydrate from the ground up by securing deals with the largest retail grocery outlets, creating innovative partnerships and evolving the brand. Today, I am confident that we are creating a powerhouse by combining AQUAhydrate with one of the largest, fastest growing alkaline water companies in the world.”
The Alkaline Water Co. will host a conference call at 8:30 am tomorrow to discuss the merger.