Cott Corp. buys Cliffstar

Cott Corp. signed an agreement to acquire Cliffstar Corp., a Dunkirk, N.Y.-based beverage manufacturer, in a deal that could eventually be worth $569 million.

Cott will pay Cliffstar $500 million in cash up front, a release said, with $14 million in deferred money to be paid over the next three years. Additionally, Cliffstar may receive up to $55 million more based on its performance in the fiscal year ending Jan. 1, 2011.

The deal will entitle Cott to a $75 million tax deduction, the release said, resulting from the acquisition of Cliffstar's assets. And the companies expect to realize $20 million in annualized cost savings as well, due to economies of scale and administrative consolidation.