Primo Water Corporation Announces Acquisition of Earth2O, Adding Approximately 9,000 Customers

Rhea-AI Summary

Primo Water Corporation (NYSE: PRMW) has acquired substantially all assets of The Sweetwater Company, operating as Earth2O, a bottled water company based in Oregon. This acquisition adds approximately 9,000 customers in the Pacific Northwest, enhancing Primo's market reach. Customers will continue to receive Earth2O products and gain access to Primo's Sierra Springs® brand and additional premium water options. The deal aligns with Primo's commitment to sustainability and customer service, marking a strategic expansion in the pure-play water solutions market.

Positive

• Acquisition of Earth2O expands customer base by approximately 9,000 in the Pacific Northwest.
• Increased product offerings for customers including Sierra Springs® and Sparkling Ice®.
• Strengthens market presence in a key region, supporting future revenue growth.

Negative

• None.

TAMPA, Fla., July 19, 2021 /PRNewswire/ - Primo Water Corporation (NYSE: PRMW) (TSX: PRMW) (the "Company" or "Primo"), a leading provider of water direct to consumers and water filtration services in North America and Europe as well as a leading provider of water dispensers, purified and spring bottled water, and self-service refill drinking water in the U.S. and Canada, today announced that Primo Water North America ("PWNA"), a wholly-owned subsidiary of Primo, has acquired substantially all of the assets of The Sweetwater Company, Inc. dba Earth2O, a bottled water company based in Oregon and known for its commitment to sustainable water, environmental responsibility and natural, pure spring water from Oregon's Cascade Range.

Earth2O manufactures and distributes spring water to residential and retail accounts in Oregon and the Pacific Northwest. The company was founded in Culver, Oregon in 1991 and sources water in the Cascade Mountains. The acquisition will add approximately 9,000 customers to PWNA, strengthening PWNA's footprint in the Pacific Northwest.

Customers of Earth2O will continue to be offered Earth2O products and will soon be able to enjoy Sierra Springs®, the Primo water brand in the region – plus, they will have the ability to select additional products for their orders, including sparkling water beverages from Sparkling Ice® and other premium water products.

"Earth2O shares our focus on offering high-quality products and delivering superior customer service in a way that aligns with our core values of sustainability, healthy living and giving back to our communities," said Tom Harrington, CEO of Primo Water Corporation. "The addition of Earth2O expands the Primo footprint and customer density in the Pacific Northwest and furthers our vision of providing pure-play water solutions whenever, wherever and however our customers want them. We are excited to welcome Earth2O customers and associates to our family!"

For more information on the hydration solutions Primo Water North America offers, please visit www.water.com. 

ABOUT PRIMO WATER CORPORATION

Primo Water Corporation is a leading pure-play water solutions provider in North America, Europe and Israel and generates approximately $2.0 billion in annual revenue. Primo operates largely under a recurring razor/razorblade revenue model. The razor in Primo's revenue model is its industry leading line-up of sleek and innovative water dispensers, which are sold through major retailers and online at various price points or leased to customers. The dispensers help increase household penetration which drives recurring purchases of Primo's razorblade offering. Primo's razorblade offering is comprised of Water Direct, Water Exchange, and Water Refill. Through its market leading Water Direct business, Primo delivers sustainable hydration solutions across its 21-country footprint direct to the customer's door, whether at home or to commercial businesses. Through its market leading Water Exchange and Water Refill businesses, Primo offers pre-filled and reusable containers at over 13,000 locations and water refill units at approximately 22,000 locations, respectively. Primo also offers water filtration units across its 21-country footprint representing a top five position.

Primo's water solutions expand consumer access to purified, spring and mineral water to promote a healthier, more sustainable lifestyle while simultaneously reducing plastic waste and pollution. Primo is committed to its water stewardship standards and is proud to partner with the International Bottled Water Association (IBWA) in North America as well as with Watercoolers Europe (WE), which ensure strict adherence to safety, quality, sanitation and regulatory standards for the benefit of consumer protection.

Primo is headquartered in Tampa, Florida (USA). For more information, visit www.primowatercorp.com.

Safe Harbor Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 conveying management's expectations as to the future based on plans, estimates and projections at the time Primo makes the statements. Forward-looking statements involve inherent risks and uncertainties and Primo cautions you that several important factors could cause actual results to differ materially from those contained in any such forward-looking statement. The forward-looking statements contained in this press release include, but are not limited to, statements related to the acquisition of Earth20 and related matters. The forward-looking statements are based on assumptions regarding management's current plans and estimates. Management believes these assumptions to be reasonable, but there is no assurance that they will prove to be accurate.

Factors that could cause actual results to differ materially from those described in this press release include, among others:; risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects; the effect of economic, competitive, legal, governmental and technological factors on Primo's business; and the impact of national, regional and global events on our business, including the recent COVID-19 outbreak.

The foregoing list of factors is not exhaustive. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors contained in Primo's Annual Report on Form 10-K and its quarterly reports on Form 10-Q, as well as other filings with the securities commissions. Primo does not undertake to update or revise any of these statements considering new information or future events, except as expressly required by applicable law.

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SOURCE Primo Water Corporation

FAQ

What is the impact of Primo Water Corporation's acquisition of Earth2O on stock symbol PRMW?

The acquisition is expected to expand Primo's customer base by approximately 9,000, enhancing revenue potential and market reach.

When was the acquisition of Earth2O by Primo Water Corporation announced?

The acquisition was announced on July 19, 2021.

What types of products will Earth2O customers gain access to after the acquisition by Primo Water Corporation?

Earth2O customers will continue to receive Earth2O products and will also have access to Primo's Sierra Springs® brand and other premium beverages.

How does the acquisition of Earth2O align with Primo Water Corporation's business strategy?

The acquisition supports Primo's focus on sustainability and customer service while expanding its footprint in the Pacific Northwest.