Shares of Primo Water (PRMW) surged on Monday following the announcement of a merger with BlueTriton, the parent company of brands such as Poland Spring, Arrowhead, and Deer Park. The all-stock deal will result in Primo shareholders owning 43% and BlueTriton shareholders holding 57% of the new entity, which is projected to generate $6.5 billion in annual revenue.
Primo Water stated, “PRIMO WATER AND BLUETRITON AGREE TO MERGE, CREATING A LEADING NORTH AMERICAN PURE-PLAY HEALTHY HYDRATION COMPANY.”
Primo Water, known for brands like Mountain Valley and Crystal Springs, also markets water-related products such as coolers and filters.
Primo’s CEO, Robbert Rietbroek, highlighted the benefits of the merger, saying, “The combined company will have a diverse portfolio of iconic brands, a national presence, and a robust delivery platform, enabling us to better serve customers’ hydration needs anywhere and anytime.”
Primo to Issue Special Dividend Before Merger Finalization
Primo Water plans to issue a special dividend of 82 cents per share to its shareholders prior to the completion of the merger, in addition to its regular quarterly dividend of 9 cents per share. The companies announced that the new entity will continue to pay Primo’s existing quarterly dividend and will establish a new long-term dividend policy after the merger is finalized. The special dividend is expected to be disbursed following the board’s approval and finalization of the transaction details.
New Company Name Pending, to Continue as Public Entity
The name of the new company has not yet been decided, but both Primo and BlueTriton confirmed it will remain listed on the New York Stock Exchange (NYSE). The transaction is expected to close in the first half of next year, pending approval from Primo shareholders.
The combined company will have dual headquarters in Tampa, Florida, and Stamford, Connecticut, reflecting the current bases of Primo and BlueTriton, respectively. Robbert Rietbroek and CFO David Hass will continue in their roles, while BlueTriton’s COO Rob Austin will become the operating chief of the merged entity.’
Primo’s stock rose nearly 8%, reaching $24.09 as of 9:51 a.m. ET on Monday.
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