THE water division of Birkby soft drinks business Ben Shaws has been sold to Britvic.
The newly-completed deal was outlined to staff in a series of briefings yesterday.
All 48 staff at the Willow Lane plant will stay with the new business.
It is not expected that there will be any job losses.
Ben Shaws produces the Pennine Spring and Fountain Head brands of bottled water.
It also produces 65m litres of own-label water for three major grocery chains each year.
Ben Shaws was founded in Huddersfield in 1871 by Benjamin Shaw. The firm was taken over some years ago by Belgian firm, Sunny Land.
The conventional drinks section manufacturing popular lines like Dandelion and Burdock and Cloudy Lemonade has not been sold.
Ian Gibbs, managing director of Ben Shaws, said: "In today's competitive market place it has become increasingly difficult to provide the right level of focus for our very diverse portfolio of water, traditional and dispense drinks.
"Our decision to focus solely on dispense is a positive and logical business strategy which will afford the company continued success."
Paul Moody, managing director of Britvic Soft Drinks, said: "This is good news for both Britvic and the employees responsible for water production at Ben Shaws.
"Britvic is looking forward to applying its proven brand development expertise to the Ben Shaws water products.
"A company-owned water brand has been a gap in our portfolio but will be a key pillar of our future strategy."
Britvic Soft Drinks is the UK's second largest soft drinks manufacturer and is based in Chelmsford.
It produces brands such as Tango, Pepsi and Robinsons.
Mr Moody said there would be a six-month transitional period when Britvic would take stock of Ben Shaws and formulate its plans.
But he was upbeat about its prospects.
"Water is the fastest growing soft drinks category and has been for some years," he said.
"Our ambition is to take a larger corner of the water market than we have done.
"We were keen to acquire a good quality water source.
"Ben Shaws has a good business and a good water source."
Water is acquired from its two boreholes in the factory.