Primo Water completes sale international business for US$575M 

US – Primo Water Corporation, a leading North America-focused water solutions provider, has successfully finalized the sale of a significant portion of its international business.  

The company entered into a definitive agreement with Culligan International for an all-cash transaction valued at US$575 million. 

Notably, the transaction excludes Aimia Foods and businesses in the United Kingdom, Portugal, and Israel. However, these units are slated for sale throughout 2024. 

David Hass, Chief Financial Officer of Primo Water, emphasized the transformative nature of this transaction, stating, “The completion of this transformative transaction simplifies and focuses Primo Water on our core pure-play North American water business.”  

He further highlighted that the streamlined focus brings enhanced financial flexibility for various strategic initiatives. 

“I am pleased to confirm that as part of our renewed commitment to lower net adjusted leverage and to return capital to shareowners, we will repay the outstanding balance on our cash flow revolver and the board of directors increased our $50 million share repurchase authorization to a total of $75 million,” he added. 

The proceeds from the sale will provide Primo Water with the financial flexibility to pursue organic growth, reduce leverage, and return capital through share repurchases and dividends.  

Additionally, the company aims to accelerate accretive tuck-in acquisitions and explore opportunities that complement its core North American water business. 

The business mix post-sale will be diversified across key water channels, including Water Dispensers, Water Direct, Water Exchange, Water Refill, and Water Filtration. This diversification aims to achieve a balanced distribution of residential and commercial customers. 

Primo welcomes new CEO 

Meanwhile, Primo Water has welcomed Robbert Rietbroek as its Chief Executive Officer (“CEO”) on January 1, 2024. Mr. Rietbroek also assumes a directorial role on Primo Water’s Board of Directors.  

To facilitate his transition, the company issued an inducement equity award to Mr. Rietbroek, consisting of 232,558 restricted share units (“RSUs”). 

According to the company, these RSUs, made outside Primo Water’s existing equity incentive plans, will vest in equal installments on each of the first two anniversaries of the grant date, contingent upon Mr. Rietbroek’s continuous service.  

The inducement award was approved by the Board of Directors under the NYSE’s Listed Company Manual Rule 303A.08, highlighting Primo Water’s commitment to transparency in the inducement process. 

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