Multi-gallon purified bottled water, refill water and water dispensers firm Primo Water Corporation has acquired drinking water provider Glacier Water Services for $273m.

The total transaction amount includes around $50m in cash, $36m in Primo common stock, the assumption or retirement of $177m of net indebtedness and preferred stock.

It also includes five-year warrants to buy two million shares of Primo Water’s common stock at an exercise price of $11.88 per share.

"The completion of this acquisition is an exciting step forward."

Primo Water chairman and chief executive officer Billy D Prim said: “The completion of this acquisition is an exciting step forward.

"We welcome the Glacier team to the Primo family, as we unite two highly-complementary businesses to create significant benefits for our customers and retail partners.

“The opportunity to expand our portfolio of high-quality water and water dispenser offerings should better position us to diversify our sales channels, create operational synergies, and drive sales, cash flow and profit growth.”

The assumed indebtedness of the transaction involves Glacier Water's trust preferred securities due in 2028, which will remain outstanding.

Primo Water funded the transaction with proceeds from a new $196m senior credit facility consisting of a five-year revolver and term loan with minimal amortisation requirements.

Glacier Water chief executive officer Brian McInerney and management will run the combined refill businesses, while its board of directors chairman Charles Norris will join Primo Water's board.