Primo Water Corporation, a provider of drinking water solutions, announced that Culligan International will acquire a significant portion of its international businesses in an all-cash transaction valued at $575 million.
The acquisition is part of a definitive agreement between the two companies.
"The transaction was the result of a proactive board-led process that resulted in an agreement that offers an attractive premium valuation for a significant portion of our international businesses and simplifies and focuses Primo Water on our core North American water business," said Tom Harrington, Chief Executive Officer of Primo Water. "Looking ahead, we will be laser-focused on growing the North American business, increasing our profitability and margins, enhancing our balance sheet strength, and returning capital to shareowners."
Primo Water said that the transaction marks a major milestone in its transformation as a company. After the transaction, the company’s portfolio with have a greater focus on its North American water business and the company will have greater financial flexibility.
The transaction is expected to close by December 31, 2023, subject to the receipt of regulatory approvals and the satisfaction of other customary closing conditions.