TAMPA, Fla. and STAMFORD, Conn. - Primo Water Corporation (NYSE: NYSE:PRMW) (TSX: PRMW), a prominent provider of water solutions in North America, has declared a special cash dividend of $0.82 per share. This announcement comes as part of the upcoming all-stock transaction with BlueTriton Brands, Inc. The dividend is payable on November 21, 2024, to shareholders on record as of the close of business on November 5, 2024.
The merger between Primo Water and BlueTriton, a North American water and beverage company, is anticipated to expand the companies' reach in the water solutions market. Primo Water operates under a "razor-razorblade" revenue model, where its water dispensers drive recurring purchases of consumable water products. The company's water solutions are available across approximately 11,350 retail locations and online. Additionally, Primo Water's Water Exchange and Water Refill services are offered in approximately 17,950 and 23,500 retail locations, respectively.
BlueTriton manages a portfolio of well-known water brands and operates ReadyRefresh, a home and office beverage delivery service focused on reusable packaging. The company is also recognized for its commitment to water resource sustainability and stewardship.
The proposed merger is subject to customary closing conditions, including regulatory approvals. The companies have provided forward-looking information regarding the special dividend and the transaction, cautioning that actual results could differ materially from those projected.
Primo Water has filed a definitive management information circular and proxy statement with regulatory authorities, detailing the transaction and related matters. Shareholders are encouraged to review these documents, which are available on the SEC and SEDAR+ websites as well as Primo Water's investor relations page.
This news is based on a press release statement and aims to inform shareholders and potential investors about the latest developments in the ongoing merger process and the special dividend declaration by Primo Water Corporation.
In other recent news, Primo Water Corporation has reported a significant 7.6% increase in total revenue for the second quarter of 2024, reaching $485 million. The company's adjusted EBITDA also saw a substantial rise, hitting $113 million, marking a 15% improvement from the previous year. Primo Water has also amended its merger agreement with BlueTriton Brands, a development disclosed in a recent SEC filing. This amendment modifies governance documents related to the anticipated merger.
Raymond James has downgraded Primo Water's stock from Outperform to Market Perform, following a significant year-to-date gain. On the other hand, RBC Capital maintains an Outperform rating, citing potential growth from the impending merger with Blue Triton.
Despite a decline in revenue from the water dispenser business due to lower wholesale prices and volume, Primo Water remains focused on improving efficiencies and cash flow conversion in the North American market. These are recent developments that have been highlighted by various analysts and news reports.
InvestingPro Insights
Primo Water Corporation's recent announcement of a special cash dividend and merger with BlueTriton Brands is complemented by strong financial performance, as revealed by InvestingPro data. The company's market capitalization stands at $4.22 billion, reflecting its significant presence in the water solutions market.
InvestingPro Tips highlight Primo Water's impressive gross profit margins, which are corroborated by the data showing a gross profit margin of 64.83% for the last twelve months as of Q2 2024. This robust profitability aligns well with the company's "razor-razorblade" revenue model mentioned in the article, suggesting efficient operations and strong pricing power in its water solutions business.
Additionally, the InvestingPro data reveals a substantial revenue growth of 26.52% over the last twelve months, indicating that Primo Water's expansion strategies and market positioning are yielding positive results. This growth trajectory bodes well for the upcoming merger with BlueTriton, as it demonstrates Primo Water's ability to capture market share and drive sales in the competitive water solutions industry.
The company's strong financial performance is further reflected in its stock price, with a remarkable 100.67% total return over the past year. This aligns with another InvestingPro Tip noting that Primo Water is trading near its 52-week high, currently at 99.64% of that peak. These metrics suggest that investors have been recognizing the company's potential, possibly in anticipation of the merger and its growth prospects.
For investors seeking more comprehensive insights, InvestingPro offers 14 additional tips for Primo Water, providing a deeper understanding of the company's financial health and market position as it approaches this significant corporate event.
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