Nestlé Canada will sell its branded bottled water business to Shelburne, Ontario-based, family-owned Ice River Springs.
The sale of Nestlé Pure Life bottled water isn't complete yet, but is expected to close in 2020's third quarter. Terms of the deal were not disclosed.
Nestlé Canada, headquartered in North York, Ontario, began to seek a potential sale in late 2019 to focus on its international brands — San Pellegrino, Perrier and Acqua Panna — Nestlé Canada President and CEO Jeff Hamilton said in a July 2 release. The international brands are not produced in Canada.
The deal is independent of Nestlé's North American business strategy that was announced earlier this year.
The sale includes factories in Puslinch, Ontario, and Hope, British Columbia, and a well in Erin, Ontario.
The acquisition widens the Ice River Springs lineup, which currently manufactures Ice River Green-brand bottled water, to move beyond the private label. The company currently produces bottled water for retailers.
"This is a significant step in our strategic sustainability journey and with the addition of this iconic brand, their skilled and dedicated people across the country and the resources of this business, we will continue our commitment to sustainable bottled water, the circular economy and to hydrating Canadians," said Sandy Gott, Ice River Springs vice president and co-owner.
Ice River Springs also runs BMP Recycling, which takes bottles and food packaging collected by municipalities and recycles it into food-grade PET.
Nestlé Canada will continue production until the deal is official.