Acqua Group Inc., a Van Nuys marketer of "bottleless" water-cooler systems, has agreed to merge with Echo Springs Water Co. Inc. of New York in an exchange of stock deal to be followed by a public stock offering by the newly merged company.
The merger is subject to shareholder approval and other conditions. If approved, Acqua and Echo Springs will become subsidiaries of a newly formed corporation called Echo Springs Water Co. Inc. Echo Springs bottles and distributes natural spring water in northeastern United States.
The merger agreement calls for one share of the new corporation's common stock to be exchanged for each 17.7 shares of Echo and each 5.23 shares of Acqua. After the merger and initial public offering, shareholders of Echo will own 40% and Acqua stockholders 19% of the new corporation.