Besides Neverfail owned by Coca-cola Amatil (ASX:CCL), Refresh is the only other company in the home and office delivery segment of the bottled water market that operates in multiple locations.
The acquisition of Aquazuro is expected to be both profit and cash flow accretive and will add to Refresh’s revenue and profit.
Importantly, it will increase Refresh’s customer density in Sydney, thereby reducing distribution costs.
Refresh started its first factory in Perth in 1997. In 2003, Refresh chose Sydney as the location of its second factory.
It now has factories in Perth, Sydney, Melbourne, Brisbane, Toowoomba and Kalgoorlie.
The company’s operations in New South Wales and Victoria achieved record profits in FY2016 and these good results are projected to continue into FY2017.
Moreover, Refresh has the financial resources to acquire more businesses and is looking for other acquisition opportunities to accelerate its growth.
In December 2016, Refresh picked up $300,000 worth of shares in Eve Investments (ASX:EVE), an investment company focused on the technology sector.
Refresh is also doing research and development into a range of bottled water targeting the health market.