Primo Water Corp. and an affiliate of BlueTriton Brands Inc. have entered into a definitive agreement to create a North American pure-play healthy hydration company in an all-stock transaction, unanimously approved by their boards of directors.
Upon closing, Primo Water shareholders and holders of incentive equity are expected to own 43 percent of the fully diluted shares of the combined company (NewCo), and BlueTriton shareholders are expected to own 57 percent of the fully diluted shares of NewCo.
“Today’s announcement marks an important milestone for the North American beverage category with the creation of a new, leading healthy hydration platform,” said Dean Metropoulos, incoming chairman of NewCo.
“The increased presence, diversified product portfolio, focus on free cash flow generation, strong balance sheet and estimated cost synergies provide the foundation for long-term value creation for our shareholders.”
NewCo is expected to be dual headquartered in Tampa, Florida and Stamford, Connecticut. Upon close, Robbert Rietbroek, current CEO of Primo Water, will serve as CEO; David Hass, current CFO of Primo Water, will serve as CFO; and Rob Austin, current COO of BlueTriton, will serve as COO for the new company.
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Primo Water is a North American pure-play water solutions company with a portfolio of sustainable hydration brands operating in the large format water category. Primo Water’s brands include Primo Water, Mountain Valley, Crystal Springs, Sparkletts and Alhambra, amongst others.
BlueTriton is a North American beverage company with a portfolio of national and regional water brands, including Poland Spring, Deer Park, Ozarka, Ice Mountain, Zephyrhills, Arrowhead, Saratoga and Pure Life. Through its ReadyRefresh business in the U.S., BlueTriton also serves the home and office beverage delivery segment with a portfolio of water brands. BlueTriton was acquired in February 2021 by an affiliate of One Rock Capital Partners, in partnership with Metropoulos & Co.
“The combination of BlueTriton and Primo Water enables our iconic, trusted brands, many with over 100 years of rich heritage, to further expand distribution and reach a broader base of customers with healthy hydration solutions,” said Joey Bergstein, CEO of BlueTriton.
“With greater presence, we also believe that we will have greater ability to positively impact our communities, invest in water stewardship and bring circular packaging and refillable options to more people in more places. Thanks to the hard work and dedication of our team, our business has experienced strong momentum leading us to this exciting combination and a bright future with many opportunities for continued growth. I look forward to working together with the Primo Water team to make this transaction a success for all of our stakeholders.”
