Canada's Cott to buy U.S. peer Primo Water for $549.4 mln

Primo Water

13/01/2020 13:31

Jan 13 (Reuters) - Canada's Cott Corp  BCB.TO   COT.N  said
on Monday it would buy U.S.-based bottled water provider Primo
Water Corp  PRMW.O  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% to
Primo's last close.
    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.
 urn:newsml:reuters.com:*:nGNXbbTtgg
    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.

 (Reporting by Praveen Paramasivam in Bengaluru; Editing by
Sriraj Kalluvila)
 ((Praveen.Paramasivam@thomsonreuters.com; within U.S. +1 646
223 8780, outside U.S. +91 80 6749 0422;))