US – Primo Water, an American-Canadian water company, has announced plans to sell a significant portion of its international business to Culligan International, a United States-based global water treatment company.
The deal which reportedly includes assets valued at up to US$575 million excludes Aimia Foods, United Kingdom, Portugal, and Israel businesses.
The move is part of Primo’s efforts to streamline its operations and focus on its core business in North America.
Primo Water has been at the forefront of providing convenient access to clean and refreshing drinking water for consumers worldwide.
With a product range that includes water dispensers, multi-gallon water bottles, and water filtration solutions, the company has established itself as a market leader. However, the decision to sell its international business operations indicates a shift in the company’s strategic priorities.
CEO of Primo Water, Tom Harrington, commented on the sale, stating, “This decision to divest our international operations is part of our broader strategy to optimize our resources and accelerate the growth of our North American business.
We believe it will enable us to better focus on our core market, invest in innovation, and deliver the high-quality products and services our customers have come to expect.”
Following the deal, Harrington expects the business to laser-focused on growing the North American business, increasing profitability and margins and enhancing our balance sheet strength.
The transaction is expected to close by the end of December 2023, subject to the receipt of regulatory approvals and the satisfaction of other customary closing conditions.
Primo Water will still retain a diversified business mix across water dispensers, water direct, water exchange, water refill, and water filtration, as well as a balanced mix of residential and commercial customers.
Primo Q3 2023 Results
The transaction follows Primo Water’s recently released Q3 results where the water company recorded rise in net sales to US$622 million, up from US$584.6 in Q3 2022.
Net income also recorded an increase to a record US$33.4 million for Q3 2023, up from US$1.3 million in Q3 2022.
“Our third quarter results reflect the underlying momentum of improving our route density, network efficiencies, and optimization, and realizing the benefits of our investments and pricing,” said Harrington.
