McKesson Buys East Coast Water Bottler

McKesson Water Products, the Pasadena-based water delivery company best known for its Sparkletts brand, said it has acquired a leading East Coast bottled-water company in a bid to expand nationally. With the acquisition of Ephrata Diamond Spring Water Co., based in Ephrata, Pa., McKesson would account for about two-thirds of the national bottled-water market, company President Charlie Norris said. Terms of the deal, expected to be completed in September, were not disclosed. Closely held McKesson delivers water to more than half a million customers in homes and offices in California, Nevada, Texas, Washington and Mexico. McKesson had $283 million in revenue in fiscal 1998. Ephrata, a 103-year-old family-owned business, has more than 45,000 customers in Delaware, Pennsylvania, Maryland and New Jersey. The company had $20 million in revenue in 1997.