Primo Water and BlueTriton enter into merger agreement

(Reuters) - North American packaged water companies Primo Water Corp and BlueTriton Brands said on Monday they would merge in an all-stock deal.

The companies said Primo Water's shareholders would likely own 43% of the combined firm upon completion of the deal, while BlueTriton are expected to own 57%.

Primo Water intends to pay a special dividend of up to $133 million ($0.82/share) to its shareholders prior to closing.

The new firm would have dual headquarters at Tampa, Florida and Stamford, Connecticut, the companies added.

After the deal is completed, Robbert Rietbroek, Primo Water's incumbent CEO will serve as top boss of the combined company, while David Hass, CFO of Primo Water, will serve as the finance chief.

The merged company will have a combined net revenue of $6.5 billion and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), of $1.5 billion, inclusive of $200 million in estimated cost synergies, for the twelve-month period ended March 31, 2024.

The merger, of which the closing date and transaction value were not disclosed, intends to bring bottled water brands such as Primo Water, Crystal Springs, Mountain Valley, Arrowhead and Poland Spring, among others, under one roof.

The combined company is expected to continue to be listed on the New York Stock Exchange, subject to approval, the companies said.

(Reporting by Aatreyee Dasgupta and Granth Vanaik in Bengaluru; Editing by Krishna Chandra Eluri)

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