The origins of Mountain Valley Spring Water go back to 1871, but the company wants to push its steady growth even further by launching an IPO. The lead underwriter on the deal is Rodman & Renshaw.
The source of Mountain Valley�s water comes from three natural springs about 10 miles outside of Hot Springs, Ark.� Rains from the Ouachita Mountain Plateau have percolated into these areas for more than 3,000 years.� It provides for a natural filtration process and allows for the accumulation of minerals like calcium, magnesium and potassium.
Besides its Mountain Valley Spring Water, the company has other valuable brands, including Mountain Valley Sparkling Water, Clear Mountain Spring Water and Diamond Spring Water.
Mountain Valley has its own bottling operation, which includes glass and plastic containers, and has focused on environmental concerns, like improving the recycling of the products.� This has helped to get distribution in premium chains like Whole Foods Market (NYSE:WFM) and The Fresh Market.
The bottled water market is certainly large. It has the No. 2 �share of the stomach� of U.S. consumers at 14%, compared to 23.3% for soft drinks.
And there are some major trends that should help bolster the demand, including a focus on healthier lifestyles as well as fears about the quality of municipal water.�
However, Mountain Valley is still a fairly small company.� For the nine months ended Sept. 30, revenue was just $19.9 million, but it did make a profit of $6.5 million.
Yet this IPO may not be the company�s ultimate goal.� Given its brand and access to quality aquifers, Mountain Valley could be a nice buyout candidate, with potential suitors including biggies like Coca-Cola (NYSE:KO), Pepsi (NYSE:PEP) and Nestl�.
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