Primo Water Corporation Announces Acquisition of Mountain Valley Water Company of Los Angeles, Adding Over 8,000 Customers

Rhea-AI Summary

Primo Water Corporation (NYSE: PRMW) has acquired the assets of Mountain Valley Water Company of Los Angeles, enhancing its service footprint in southern California. This acquisition will add over 8,000 customers to Primo Water North America, enabling the distribution of Mountain Valley Spring® Water and Primo's Sparkletts® brand. The merger aims to bolster customer service and product offerings, aligning with both companies' commitment to high-quality water solutions. This strategic move is expected to further consolidate Primo's market presence in the North American water delivery sector.

Positive

• Acquisition adds over 8,000 customers to Primo Water North America.
• Strengthens footprint in southern California.
• Enhances product offerings with both Mountain Valley and Sparkletts brands.

Negative

• None.

TAMPA, Fla., Oct. 13, 2020 /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 bottled water, and self-service refill drinking water in the U.S. and Canada, today announced that Primo Water North America ("Primo NA"), a wholly-owned subsidiary of Primo, has acquired substantially all of the assets of Mountain Valley Water Company of Los Angeles ("MVLA").

MVLA has been a leading provider of high-quality water delivery services to homes and offices in the Los Angeles area since its founding in 1983, and is the largest distributor of Mountain Valley in the U.S. The acquisition will add over 8,000 customers to Primo NA, strengthening its footprint in southern California. Customers of MVLA will continue to be offered Mountain Valley Spring^® Water and can also now enjoy Sparkletts^®, the Primo water brand in the region, and have the ability to select additional products for their orders, including coffee and tea, sparkling water beverages from Sparkling Ice® as well as other premium water products.

"MVLA shares our focus on offering high-quality products and delivering superior customer service and strengthens our footprint and customer density in southern California," said Dave Muscato, President of Primo NA. "We are excited to become the sole home and office bottled water distributor of our great Mountain Valley spring water product in southern California, and we welcome the Los Angeles Mountain Valley customers and associates to our family."

Mark Scott, President of MVLA, added, "Primo NA is a natural combination for MVLA given our mutual commitment to delivering the highest quality water products centered around natural sources, premier customer service and ecological preservation. I look forward to seeing the combined success of our products and services under Primo's ownership." 

For more information on the hydration solutions Primo NA 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 $2.1 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 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 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.

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SOURCE Primo Water Corporation

FAQ

What is the significance of Primo Water's acquisition of Mountain Valley Water Company?

The acquisition strengthens Primo Water's market presence in southern California by adding over 8,000 customers and enhancing its product offerings.

How will the acquisition impact customers of Mountain Valley Water?

Customers will continue to receive Mountain Valley Spring® Water and will also have access to Primo's Sparkletts® brand and other products.

When was the acquisition of Mountain Valley Water Company announced?

The acquisition was announced on October 13, 2020.

What are the expected benefits of the acquisition for Primo Water Corporation?

The acquisition is expected to improve customer service, expand product offerings, and strengthen market presence in North America.

What is the stock symbol for Primo Water Corporation?

The stock symbol for Primo Water Corporation is PRMW.