Welcome to our dedicated page for Primo Water Corporation news (Ticker: PRMW), a resource for investors and traders seeking the latest updates and insights on Primo Water Corporation stock.
Primo Water Corporation (NASDAQ: PRMW) is a leading provider of sustainable drinking water solutions in North America and Europe. Founded in 2004 by Billy Prim, the company was modeled after his previous success with Blue Rhino, the market leader in propane grill cylinder exchange. Primo Water offers a range of products including water dispensers, bulk purified bottled water, self-service refill water, and exchange water services. The company is recognized for its innovative and stylish water dispensers, available for both home and office use, which help reduce environmental waste.
Primo Water's operations are largely concentrated in North America, following a strategic divestment of a significant portion of its international business. The firm typically initiates customer relationships through the sale of water dispensers and generates recurring revenue via their Water Direct and Water Exchange services. Two-thirds of the total sales come from these recurring revenue streams, involving the delivery of large-format water bottles to residential and commercial customers.
In a recent development, Primo Water announced an agreement whereby Culligan International will acquire a significant portion of its international businesses in an all-cash transaction valued at up to $575 million. This transaction, expected to close by the end of 2023, will allow Primo Water to focus on its core North American business, enhance profitability, and return capital to shareholders.
Primo Water is committed to sustainability and environmental responsibility. The company partners with organizations like the International Bottled Water Association (IBWA) and Watercoolers Europe (WE) to ensure adherence to high safety, quality, and regulatory standards. Primo Water’s mission is to expand consumer access to purified, spring, and mineral water, promoting a healthier and more sustainable lifestyle while reducing plastic waste.
The company generated approximately $2.2 billion in annual revenue in 2022 and operates under a recurring revenue model in the large format water category (defined as three gallons or greater). Its products are sold through approximately 10,900 retail locations and online. Primo Water’s water solutions include Water Direct, Water Exchange, and Water Refill, with over 23,500 self-service refill drinking water stations across North America.
Primo Water is headquartered in Tampa, Florida. For more information, visit their website at www.primowatercorp.com.
Legion Partners Asset Management, a major shareholder of Primo Water Corporation (PRMW), announced it has filed a definitive proxy statement with the U.S. Securities and Exchange Commission regarding Primo's 2023 Annual and Special Meeting scheduled for May 3, 2023. Legion Partners encourages shareholders to vote for its director candidates using the WHITE universal proxy card. They have also sent a letter to shareholders outlining their campaign for boardroom change, which can be accessed online. The firm specializes in activist investing focusing on U.S. small-cap companies.
Primo Water Corporation (NYSE: PRMW) is urging shareholders to vote for its ten qualified directors at the upcoming Annual Meeting on May 3, 2023, following a campaign by Legion Partners Holdings to replace two of its board members. The Company reported double-digit top-line growth in 2022, with an expansion of Adjusted EBITDA margin from 13% to 19% over five years. Despite challenges such as high inflation and the exit from the Russian market, Primo Water achieved a record dividend distribution of $0.28 per share and plans to buy back up to $76 million in stock. The Company emphasizes its commitment to sustainability and reducing its environmental impact.
Primo Water Corporation (NYSE: PRMW) announced that its Board of Directors has waived certain deficiencies allowing two of Legion Partners Holdings' director candidates to be nominated for the upcoming Annual Meeting on May 3, 2023. This decision comes after Legion submitted an invalid nomination notice, omitting material facts about two candidates, including serious legal issues. The Board asserted that full compliance with company bylaws is necessary and emphasized its duty to safeguard shareowner interests. The Board determined that two other candidates from Legion will not be recognized due to these misrepresentations.
On March 22, 2023, Primo Water Corporation (NYSE: PRMW) announced that its Board of Directors allowed two of Legion Partners Holdings' candidates to be nominated for election despite deficiencies in their nomination notice. The Board found that two candidates, Timothy Hasara and Derek Lewis, did not make material misrepresentations, allowing their nominations. However, the Board rejected nominations for Henrik Jelert and Lori Marcus due to serious misrepresentations, including undisclosed legal issues. The Annual Meeting is scheduled for May 3, 2023, and shareowners need not take any action at this moment.
Legion Partners Asset Management has filed a lawsuit against Primo Water Corporation in the Ontario Superior Court of Justice. The lawsuit challenges the Board's rejection of Legion's nomination of four independent directors for the annual meeting on May 3, 2023. Legion claims the Board's recent bylaw amendments are oppressive and a breach of fiduciary duty, undermining shareholder rights. The firm accuses Primo of adopting controversial bylaws to entrench its position and prevent shareholder votes, highlighting concerns over the Board's composition, including long-serving directors linked to Crescendo Partners and former CEOs associated with the company's past underperformance.
Primo Water Corporation (NYSE: PRMW) CEO Tom Harrington was featured on ICR's "Welcome to the Arena" podcast, discussing the company's evolving service-based model and its recurring-revenue strategy. The podcast, which debuted in August 2021, highlights insights from various business leaders and is available on major platforms including Apple Podcasts and Spotify. ICR, founded in 1998, offers strategic communications and advisory services, supporting nearly 1,000 clients across multiple sectors.
Legion Partners Asset Management, a significant shareholder of Primo Water Corporation (PRMW), has issued a statement condemning the company's rejection of its nomination of four independent director candidates for the Board. Legion Partners describes Primo's actions as desperate attempts to distract shareholders from the company's poor performance. Allegations made against nominee Henrik Jelert are rebuffed as false and irrelevant. Legion Partners emphasizes the need for change in the underperforming Board and commits to ensuring shareholders can vote for its nominees at the upcoming Annual Meeting.
On March 17, 2023, Primo Water (NYSE: PRMW) announced that it will not recognize nominations submitted by Legion Partners to elect four candidates to its Board of Directors for the upcoming Annual Meeting on May 3, 2023. The decision was based on Legion's Notice containing misrepresentations, including failure to disclose that candidate Henrik Jelert faced bribery charges. Additionally, Legion's Notice lacked required disclosures about another candidate's pending fraud lawsuit. As a result, any votes for Legion's candidates will be disregarded, reaffirming Primo Water's governance standards.
Primo Water Corporation (NYSE: PRMW) appointed Eric J. Foss to its Board of Directors as part of an ongoing refreshment strategy. Effective immediately, Foss's extensive experience in leading beverage companies is expected to drive growth and profitability. He previously served as CEO of Aramark and held significant roles at Pepsi Bottling Group, contributing to strong earnings growth. The board will temporarily expand to eleven members, with ten incumbents up for reelection at the 2023 Annual and Special Meeting. Stephen Halperin will retire at the meeting after reaching the mandatory retirement age.
Legion Partners Asset Management has issued a public letter to Primo Water Corporation's shareholders, advocating for the appointment of four independent directors to the Board. This call for change stems from concerns over the company’s chronic operational underperformance, with Legion Partners holding approximately 1.5% of the outstanding shares. The proposed nominees possess substantial experience in beverage operations, marketing, and capital allocation. Legion Partners believes that with the right leadership, Primo could significantly improve its financial performance, potentially tripling its share price and achieving over $630 million in EBITDA by 2027.
FAQ
What is the current stock price of Primo Water Corporation (PRMW)?
What is the market cap of Primo Water Corporation (PRMW)?
What does Primo Water Corporation do?
What are Primo Water's primary products?
Where is Primo Water Corporation headquartered?
How does Primo Water generate revenue?
What recent business changes has Primo Water made?
What is the environmental impact of Primo Water's services?
What is Primo Water's market share in water dispensers?
How many retail locations sell Primo Water products?
Who founded Primo Water Corporation?
What partnerships does Primo Water have?
