Cott Corporation has completed the acquisition of Primo Water Corporation, a leading provider of water dispensers, purified bottled water, and self-service refill drinking water in the U.S. and Canada.
The acquisition of Primo is consistent with Cott’s strategy of transitioning to a pure-play water solutions provider, the company said. The acquisition adds further density to the distribution platform of Cott’s existing North American business by adding leading scale water solutions businesses to its portfolio.
Cott has conducted an exchange offer by its wholly-owned subsidiary, Fore Acquisition Corporation for all of the outstanding shares of common stock of Primo. The consideration is $14 per share, payable in cash, stock, or a combination thereof at the election of Primo’s stockholders, subject to the terms of the merger agreement. The transaction values Primo at approximately $775 million.
As a part of the transaction, Cott will change its name to Primo Water Corporation.
“The Primo acquisition is another great step in our strategy to become a pure-play water solutions provider with financial metrics more in line with our peers,” said Tom Harrington, Cott’s CEO. “We firmly believe that our combined businesses will drive significant value for our shareholders over the coming years.”