Primo Water Corporation has acquired Glacier Water Services, a provider of drinking water dispensed to consumers through self-service refill water machines. Under the definitive merger agreement, Primo will acquire all outstanding shares of Glacier.
The acquisition will provide retail partners and consumers a diversified, high-quality water and water dispenser offering. With the acquisition, Primo said it will distribute to approximately 46,000 retail locations throughout the U.S. and Canada. The transaction will unite two complementary brands and is intended to generate operating scale through an expansive refill and exchange network. Additionally, the acquisition will drive future cross-selling opportunities, cost savings and consistent cash flows, the company said.
The total preliminary transaction consideration is approximately $263 million, consisting of approximately $50 million in cash, approximately $36 million in Primo common stock, approximately $177 million of net indebtedness and preferred stock being assumed or retired, and five-year warrants to purchase two million shares of Primo’s common stock at an exercise price of $11.88 per share, subject to adjustments based on any increases in Glacier’s debt and certain transaction expenses.
“We are excited to announce the acquisition of Glacier Water, an industry leader in self-service refill water with an exceptional brand. Together, we will continue to drive our mission of inspiring healthier homes through better water. This acquisition provides the opportunity to create significant value for our shareholders and offers strong benefits for our consumers and retail partners,” said Billy Prim, Primo’s chairman and CEO.
“Glacier and Primo have a common mission and together we intend to build upon our respective strengths to further develop our service model and drive efficiencies as we broaden our consumer demographics through complementary customer bases across North America,” said Brian McInerney, CEO of Glacier Water.
The acquisition agreement has been unanimously approved by the board of directors of both companies and is expected to close in late 2016, subject to customary closing conditions.
