Canada’s Cott Corp said on Monday it would buy U.S.-based bottled water provider Primo Water Corp for $549.4 million in cash and stock, as it seeks to strengthen its position in the North American market.
Cott has offered each Primo shareholder $14 in cash, stock or a combination of both, which implies a premium of 26.2 per cent to Primo’s last close, according to Reuters.
Shares of Primo were trading at near the offer price in premarket trading on Monday.
“As Primo and Cott have been strategic partners for six years, we expect a smooth transition and integration,” Cott’s Chief Executive Officer Tom Harrington said in a statement.
Cott in recent years has bought bottled water companies, including Europe’s Eden Springs and U.S.-based DS Services, as it shifts focus to its high-margin water business and away from its tea and coffee businesses.
The company is evaluating strategic options for its S&D Coffee and Tea coffee business as part of that transition.
North Carolina-based Primo would become a wholly owned unit of Cott after deal completion, expected by March 2020.
(Reuters)
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