Cott closes $775m Primo Water acquisition deal

Bottled and canned carbonated beverages distributor Cott has completed the acquisition of Primo Water in a deal valued approximately $775m.

Primo offers water dispensers, purified bottled water and self-service refill drinking water in the US and Canadian markets.

Cott agreed to acquire Primo in January as part of its strategy to transition into a pure-play water solutions provider.

The acquisition is expected to strengthen Cott’s presence in the North American market by adding water solutions business to its portfolio.

Cott CEO Tom Harrington said: “The Primo acquisition is another great step in our strategy to become a pure-play water solutions provider with financial metrics more in line with our peers.

“We firmly believe that our combined businesses will drive significant value for our shareholders over the coming years.”

As part of the deal, Cott will change its name to Primo Water Corporation.

For the deal, Deutsche Bank Securities acted as financial adviser to Cott, while Faegre Drinker Biddle & Reath and Goodmans provided legal counsel.

Furthermore, Goldman Sachs served as the financial advisor to Primo and K&L Gates offered legal counsel.

Recently, Cott concluded the sale of its S&D Coffee and Tea (S&D) business to Westrock Coffee Company for $405m.

S&D Coffee and Tea business has been providing custom coffee roasting and blends iced teas for foodservice and convenience stores across the US since 1927.

It also offers a range of infused drinks, juices, syrups and cappuccinos, and is a leader in the high growth category of extracts and ingredients.