Article Date 14/01/2020

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Cott Corporation to acquire Primo Water in deal 'valued at $775m'

Source FoodBev Media

Cott Corporation has entered into an agreement to acquire Primo Water Corporation, in a transaction that values Primo at approximately $775 million.


Following completion of the deal, Primo will become a wholly-owned subsidiary of Cott, while Cott will reportedly rebrand its corporate name to Primo Water Corporation.

Under the terms of the agreement, Cott will pay a total of approximately $216 million in cash to Primo stockholders, which it says it will fund with proceeds from the potential sale of its S&D Coffee and Tea division.

Cott will also issue approximately 26.8 million new shares to Primo stockholders and obtain a loan of up to $400 million from an affiliate of Deutsche Bank Securities.

Active in the US and Canada, Primo is a provider of water dispensers, purified bottled water and self-service refill drinking water.

The merger agreement of Cott and Primo, along with the divestiture of its coffee and tea unit will help Cott transition into a pure-play water company.


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