Primo Water Corporation and an affiliate of BlueTriton Brands, Inc. have successfully obtained regulatory approval under the Investment Canada Act (ICA) for their proposed all-stock merger. This milestone represents a significant step towards finalizing the transaction, which was initially announced earlier this year. The approval under the ICA, along with the recent expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, satisfies all regulatory requirements for the merger to proceed.
The combined entity, expected to be finalized by the end of 2024, is poised to become a leading force in the North American pure-play healthy hydration market. Robbert Rietbroek, Primo Water’s CEO, expressed his enthusiasm about the regulatory approval, stating that it represents a major step towards achieving their shared vision.
“We are pleased to have completed another important step on the path to combining Primo Water and BlueTriton Brands to create a North American leader in pure-play healthy hydration. As we approach the shareowner vote, I am confident that our shareowners will recognize the significant value this combination will create,” said Rietbroek.
He further highlighted the strength of both companies, emphasizing the benefits this merger will bring to customers, employees, shareholders, and stakeholders.
Primo Water Corporation, headquartered in Tampa, Florida, is a prominent player in the North American water solutions market. The company operates primarily under a recurring revenue model, focusing on the large-format water category (3 gallons or greater). This approach, often referred to as a “razor-razorblade” model, leverages the initial sale of water dispensers to generate recurring revenue from the sale of water solutions. Primo Water’s extensive network of 11,350 retail locations and online presence ensures broad market reach for its water dispensers.
The company offers a range of water solutions, including Water Direct, Water Exchange, and Water Refill, catering to both residential and commercial customers. Through Water Direct, the company provides sustainable hydration solutions directly to customers. Water Exchange enables customers to purchase pre-filled water bottles at retail locations, exchanging empty bottles at designated recycling centers for discounted new bottles. Finally, Water Refill allows customers to refill empty bottles at self-service stations located in approximately 23,500 locations across North America.
Primo Water also offers water filtration units throughout North America, emphasizing its commitment to providing access to purified, spring, and mineral water while promoting sustainability and reducing plastic waste.
BlueTriton Brands, Inc., headquartered in Stamford, Connecticut, is a prominent water and beverage company in North America. The company produces and distributes a diverse portfolio of brands, including Poland Spring, Deer Park, Ozarka, Ice Mountain, Zephyrhills, Arrowhead, Origin, Saratoga, AC+ION, Pure Life, B’EAU, and Splash Refresher.
BlueTriton also operates ReadyRefresh, a home and office beverage delivery platform that emphasizes reuse and refill. This platform offers a wide selection of water and beverage products, primarily sold in reusable, multi-serve bottles. With a focus on sustainability and convenience, ReadyRefresh aims to reduce waste while providing healthy hydration to customers.
The combined entity, once fully operational, is expected to benefit from synergies across various aspects of the business. The transaction is expected to be accretive to earnings per share in the first full year after closing. Furthermore, the merger will create a combined company with a stronger financial position and a more diversified portfolio of products and services.
The success of this merger will depend on several factors, including the integration of operations, product lines, and employees, as well as the realization of anticipated synergies. The combined company will need to navigate challenges such as potential disruption to existing business relationships and the integration of two distinct corporate cultures.
The transaction remains subject to the approval of Primo Water’s shareholders and the court approval of the plan of arrangement for the transaction. The combined company will have a strong presence in the North American market, offering a comprehensive range of water solutions and beverages. This merger is expected to have a significant impact on the industry, shaping the future of healthy hydration in North America.
