Merrydown, one of the UK's last independently-owned drinks companies, has agreed a takeover by SHS, owner of FAB brand WKD.
SHS is paying 170p a share for cidermaker Merrydown, valuing the business at around £37 million. Merrydown's directors are backing the deal and have urged shareholders to approve the offer.
Merrydown's products, which include the Shloer grape juice range as well as the flagship cider brand, are expected to join SHS's Beverage Brands division, which also includes WKD, Woody's, and Joe's Club Cocktails.
Northern Ireland-based SHS also owns Caledonian water, and distributes food products to supermarkets through its Farmlea Foods and Gourmet Garden division.
SHS chairman Joe Sloan said: "We are in the business of building quality brands. We are therefore delighted to be adding Shloer and Merrydown cider to our portfolio and look forward to continuing the growth that has been achieved in recent years."
Andy Nash, chairman of Merrydown, said the deal makes sense because "a larger organisation such as SHS has the resources to grow the brands faster than Merrydown can as an independent company."
Merrydown was founded in 1946 by three cider enthusiasts, using a 300 year old oak cider press. It maintained a reputation for preserving the cidermaker's heritage with its products, using traditional methods at a time when the major suppliers switched to mass production.
Its best known brand is Merrydown Vintage, but among enthusiasts it is also well known for its occasional traditional English fruit wines, which have included elderberry, redcurrant, white grape, gooseberry and cherry varieties.