Primo Water and BlueTriton to merge, creating packaged water leader
The combined company is expected to have $6.5bn in net revenue and $1.5bn in adjusted EBITDA. Its portfolio will include brand such as Poland Spring, Deer Park and Pure Life (currently BlueTriton) and Primo Water, Mountain Valley and Crystal Springs.
From Arrowhead to ReadyRefresh
Key players in bottled water
Bottled water makes up some $25bn of the $138bn US beverage category and has been growing steadily.
BlueTriton currently has around an 18% market share of the category, which will edge up with the acquisition of Primo Water.
Other key players are Coca-Cola (16%), PepsiCo (10%) and Nestlé (which retains around 4% of the category with premium global brands such as S. Pellegrino and Perrier).
The merger will create a new entity with a diversified portfolio of brands, a national footprint and combined delivery platform, say the two companies.
Furthermore, the companies estimate they can make around $200m in cost synergies by merging their operations.
And they believe they’re well-placed to capitalize on the large and growing water category, with consumers increasingly focused on health and wellness and turning away from sugary drinks.
They also champion the sustainability credentials of Primo Water's large format bottles - which are designed to be reused up to 40 times before being recycled - as a factor that will play into consumer preferences.
The portfolio of the two companies will be be split between retail brands (around 56% of net revenue), water direct and exchange services (around 40%), and in refill, filtration and dispensers systems (4%).
BlueTriton Brands was created in 2021 when Nestlé sold its Nestlé Waters North America division to One Rock Capital Partners and Metropoulos & Co for $4.3bn. It has more than 7,000 employees across the US and Canada.
Its brands include Poland Spring, Deer Park, Ozarka, Ice Mountain, Zephyrhills, Arrowhead, Origin, Saratoga, AC+ION, Pure Life, B'EAU and Splash Refresher.
BlueTriton also owns and operates ReadyRefresh, a reuse and refill platform for home and office beverage delivery in the US.
Since the acquisition in 2021, BlueTriton's net revenue has grown from $3.9bn in 2021 to $4.7bn in 2024 (12 months ending March 31, 2024), a compounded annual growth rate of 9%.
Primo Water – which operates primarily in the large format water category with home and office solutions – grew net revenue from $1.4bn in 2021 to $1.8bn in 2024 (12 months ending March 31, 2024), a compounded annual growth rate of 11%.
Last year it started selling off its international business to concentrate on its home North American market.
New combined company
With the name yet to be confirmed, the new company will be dual-headquartered in Tampa, Florida; and Stamford, Connecticut.
Robbert Rietbroek, the current CEO of Primo Water, will serve as CEO of the combined company.
Dean Metropoulos, the current Chairman of the Board of BlueTriton, will become Non-Executive Chairman of the Board; David Hass, the current Chief Financial Officer of Primo Water, will become Chief Financial Officer, and Rob Austin, the current Chief Operating Officer of BlueTriton, will serve as Chief Operating Officer.
Primo Water and BlueTriton shareholders will exchange their respective shares into shares of a new holding company. Primo Water shareholders and holders of incentive equity are expected to own 43% of the fully diluted shares of the new company, and BlueTriton shareholders are expected to own 57% of the fully diluted shares.
The combined company is expected to continue to be listed on the NYSE, subject to approval of such listing by the NYSE. The common shares of Primo Water, as a wholly owned subsidiary of the new company, will no longer be listed on any public market.
The transaction is expected to close in the first half of 2025.
