Drinks group C&C said it has agreed to buy an Irish drinks supplier and distributor in a deal worth €58 million.

The company said it would pay €12.4 million in cash for Gleeson Group, with €4.4 million deferred for a year. The deal also includes €45.6 million, bringing the total cost to €58 million.

Gleeson distributes packaged long alcohol drinks, and manufactures Tipperary mineral water, Finches soft drinks and a range of own-label brands for retailers. It also supplies plastic bottles to drinks manufacturers.

In the 12 months to June 2012, the company generated earnings before interest, depreciation, amortisation and tax of €10.2 million.

C&C chief executive Stephen Glancey said the acquisition would add an extensive distribution network, and could transform its existing Irish business, strengthening it significantly.

"The extended portfolio and direct distribution network should create a more resilient trading model that is better suited to dealing with the challenges of both current and future trading environments," he said. "It is a model that has the potential to deliver growth through investment, further brand acquisition and new agency agreements."