lITTLE ROCK, ARK.—Westrock Coffee Co. entered into a definitive agreement to acquire Cott Corp’s S&D Coffee & Tea business.

The transaction, along with Cott’s acquisition of Primo Water Corp. earlier this month, is part of a broader effort to transition to a pureplay water company. Cott acquired S&D in 2016 for $355 million.

Westrock plans to expand S&D’s facilities in Concord, N.C., upon completion of the transaction but will remain headquartered in Arkansas. Both companies will continue to operate under the respective brand names for the foreseeable future.

“This strategic combination will create the nation’s premier coffee, tea and extract supplier that is capable of serving the most complex and demanding customers across the country and around the world,” said Scott Ford, co-founder and chief executive officer of Westrock Coffee. “We intend to use the scale of the new company to offer the most innovative beverage solutions with competitive pricing to our global clients while simultaneously providing a premium price to our farmer partners at origin.”

S&D is a custom coffee roaster and the largest blender of iced teas for food service and convenience stores in the United States. It also is a leader in the high-growth category of extracts and ingredients.