PRIMO WATER CORPORATION ANNOUNCES ACQUISITION OF SIPWELL IN BELGIUM

Rhea-AI Summary

Primo Water Corporation (NYSE: PRMW) has announced the acquisition of Sip-Well NV, a leading distributor of water solutions in Belgium. This acquisition strengthens Primo's presence in Western and Central Europe and positions SipWell for growth, driven by increased water consumption and healthier lifestyles. SipWell serves over 20,000 customers with premium water solutions and will continue operations under Primo's global organization. The strategic move enhances Primo's market leadership in sustainable drinking solutions while expanding its product offerings across Europe.

Positive

• Acquisition of Sip-Well NV enhances Primo's market position in Belgium.
• SipWell serves over 20,000 customers with a strong distribution network.
• The acquisition is expected to drive future growth due to increased water consumption and healthier lifestyles.
• Primo's global resources will enhance SipWell's service offerings.

Negative

• None.

TAMPA, Fla., Jan. 5, 2022 /PRNewswire/ - Primo Water Corporation (NYSE: PRMW) (TSX: PRMW) (the "Company" or "Primo"), a leading provider of sustainable drinking water solutions in North America and Europe, today announced that it has acquired Sip-Well NV, the leading distributor of water solutions in Belgium ("SipWell").

SipWell is uniquely positioned as the premium Belgium water solutions brand and offers highly functional and attractive cooler models as well as a unique bottle design to more   than 20,000 customers.  The acquisition further strengthens Primo's presence in Western and Central Europe, and SipWell is well positioned for strong future growth driven by increased water consumption through healthier lifestyles, improved environmental awareness and the high-growth residential channel.  Customers will continue to receive products and services from the vertically integrated distribution and production operations of SipWell, while benefiting from being part of Primo's global organization which shares a commitment to high-quality service and a growing platform of products and services.

"SipWell offers high-quality water solutions and delivers superior customer service that aligns with our mission of inspiring healthier lives through better quality water," said Tom Harrington, CEO of Primo Water Corporation. "The addition of SipWell makes Primo the leading provider of sustainable drinking solutions in Belgium, expanding the Primo footprint and furthering our vision of providing pure-play water solutions whenever, wherever and however our customers want them."

SipWell has been operating in Belgium since 1993 and has a centrally positioned water source and production site with significant capacity to grow. 

ABOUT PRIMO WATER CORPORATION

Primo Water Corporation is a leading pure-play water solutions provider in North America and Europe 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 22-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 22-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 SipWell 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 significance of Primo Water's acquisition of Sip-Well NV?

The acquisition strengthens Primo's market presence in Belgium and Europe, positioning it as a leading provider of sustainable drinking solutions.

How many customers does Sip-Well serve?

Sip-Well serves over 20,000 customers in Belgium.

What are the expected benefits of the Sip-Well acquisition for Primo Water?

The acquisition is expected to drive growth and enhance product offerings, focusing on healthier lifestyles and sustainable water consumption.

When was the acquisition of Sip-Well NV announced?

The acquisition was announced on January 5, 2022.

What is the stock symbol for Primo Water Corporation?

The stock symbol for Primo Water Corporation is PRMW.