A water cooler manufacturer has signed a multi-million-pound deal with one of the largest food and drink companies in the world.

The deal, worth 50m euros, will see Ebac, of Bishop Auckland, County Durham, work with Nestl's water cooler division for six years, exclusively supplying and developing coolers for its European operations.

Nestl Waters is buying patented cooler technology from Ebac that will be launched during the next two years.

Ebac is a major supplier to the water cooler market, with one in three office water coolers in the UK manufactured at Ebac's Bishop Auckland factory.

Commercial director Tony Hird said: "This is a fantastic deal for both companies. Ebac and Nestl Waters complement each other very well.

"This deal cements our position as a market leader in Europe and provides a very strong platform for Ebac to further develop its supply partnership with Nestl Waters.

"Ebac is actively seeking to expand the agreement to Eastern Europe and other parts of the world."

Nestl Waters director Ian Painter said: "This was not an easy decision to make as there are many good cooler suppliers out there, which we have worked with and considered. However, Ebac stood out above all because they understand the water cooler market, they are very innovative and are able to combine these two skills to create great products to our customers. We are looking forward to working with Ebac over the next six years."