UK water cooler maker buys rival

Water coolers, where office workers across the UK meet to flirt, exchange gossip, and plot boardroom coups, could soon be supplied by just one company.

PHS Group, the country's leading supplier of plumbed-in water coolers, has bought out its main rival UK Water in a £6.4m cash-only deal.

The move marks a radical consolidation in the UK market for plumbed-in coolers, which is now shared by just three companies.

The wider market for bottled water dispensers - which depends on regular deliveries of bottles - is divided among a larger number of businesses.

But plumbed in coolers are gaining in popularity because they are seen as healthier and more convenient.

Peter Cohen, chief executive of PHS Group, said the acquisition of UK Water is "an important strategic move" for his company.

The water cooler became known worldwide as the hub of workplace gossip during the mid-1990s after it began to feature prominently in popular office-based TV sitcoms.