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
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