North American packaged water companies Primo Water Corp and BlueTriton Brands announced Monday they will merge in an all-stock deal.
The companies said Primo Water shareholders would own 43% of the combined company following the deal, while BlueTriton is expected to own 57%.
Primo Water intends to pay a special dividend of up to $133 million ($0.82 per share) to its shareholders prior to the completion of the transaction.
The new company will have two headquarters, one in Tampa, Florida, and the other in Stamford, Connecticut, the companies added.
Following the completion of the transaction, Robbert Rietbroek, current CEO of Primo Water, will be the principal executive of the new company, while David Hass, CFO of Primo Water, will be its CFO.
The combined company will have combined net sales of $6.5 billion and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.5 billion, including $200 million in synergies of estimated costs, for the twelve-month period ending March 31, 2024.
The merger, for which the closing date and value of the transaction were not disclosed, aims to bring together under one roof bottled water brands such as Primo Water, Crystal Springs, Mountain Valley, Arrowhead and Poland Spring, among others.
The combined company is expected to continue trading on the New York Stock Exchange, subject to approval, the two companies said. (Reporting by Aatreyee Dasgupta and Granth Vanaik in Bengaluru; Editing by Krishna Chandra Eluri)
