Key Takeaways
- Two bottled water giants, Primo Water and BlueTriton, announced plans to merge Monday.
- The newly combined entity will remain a public company and expects to continue trading on the New York Stock Exchange (NYSE).
- Primo plans to pay a special dividend of 82 cents per share before the merger is closed, in addition to its normal quarterly dividend of 9 cents per share.
Shares of bottled water company Primo Water (PRMW) jumped Monday after the company announced plans to merge with BlueTriton, which owns brands like Arrowhead, Deer Park, and Poland Spring.
The all-stock transaction would see Primo shareholders own 43% and BlueTriton shareholders 57% in the combined company with $6.5 billion in annual revenue.
Primo also owns a number of bottled water brands like Mountain Valley and Crystal Springs, and sells other water-related products like water coolers and filters.
“The combined company will benefit from a diversified portfolio of iconic brands, a national footprint and the strength of the combined delivery platform to better serve customers anywhere and anyway they hydrate,” Primo Chief Executive Officer (CEO) Robbert Rietbroek said.
Primo To Pay Special Dividend Prior To Closing
Primo said that the company plans to pay a special dividend of 82 cents per share to shareholders before the deal closes, in addition to its regular quarterly dividend of 9 cents per share.
The companies said the newly formed entity plans to continue paying Primo’s previous quarterly dividend, but said a new long-term dividend policy will be created once the merger is complete.
The special dividend is expected to be paid after Primo’s board approves the merger and other details of the transaction have been finalized.
New Company Name TBD, Will Continue as Public Company
The new company has not yet been named, but Primo and BlueTriton said that they expect it to continue being traded on the New York Stock Exchange (NYSE).
Once the deal is approved by Primo shareholders, the companies said the transaction is expected to close in the first half of next year.
The combined entity would maintain dual headquarters in Tampa, Fla., and Stamford, Conn., where Primo and BlueTriton are respectively based. Primo’s Rietbroek and CFO David Hass will serve in the same roles with the new company, while BlueTriton COO Rob Austin will be the operating chief of the merged entity.
Primo shares jumped nearly 8% to $24.09 as of 9:51 a.m. ET Monday.