The biggest name in bottled water is getting bigger.
Today, Primo Water Corporation and an affiliate of BlueTriton Brands announced the two water giants have entered a definitive agreement to merge, creating a new combined entity, effectively taking the largest manufacturer of bottled water in the U.S. public.
Shareholders in Primo, which is focused on bulk water and water dispensers, and owners of the Mountain Valley and Crystal Springs brands, will hold 43% of fully diluted shares in the combined entity, leaving BlueTriton’s shareholders with the remaining 57%. The company is expected to have combined net revenue of $6.5 billion for the 12-month period ending March 31 and will be dual headquartered in Tampa, Fla., and Stamford, Conn.
BlueTriton chairman Dean Metropolous will serve as non-executive chairman of the business, while Primo chief executive Robbert Rietbroek will be the CEO. Primo CFO David Hass and BlueTriton COO Rob Austin will also continue in their roles at the new entity.
“The increased presence, diversified product portfolio, focus on free cash flow generation, strong balance sheet and estimated cost synergies provide the foundation for long-term value creation for our shareholders,” Metropoulos said in a statement.
BlueTriton initially formed in 2021 following the $4.3 billion acquisition of the former Nestlé Waters North America bottled water portfolio (plus ReadyRefresh) by One Rock Capital Partners and investment firm Metropoulos & Co. According to NielsenIQ, U.S. retail dollar sales of BlueTriton’s bottled water portfolio were up 1.9% to over $4.2 billion in the 52-weeks ending June 1 – trailing only the $6.4 billion private label segment.
According to Axios, publicly-traded Primo had a $3.6 billion market cap prior to the announcement of the merger, and had nearly doubled in value from this point in 2023.
While ReadyRefresh has previously placed BlueTriton in the water jug business, Primo is poised to fully round out its capabilities in the dispenser category. Meanwhile, Primo has made reducing single-use bottle waste a key piece of its messaging, but BlueTriton has likewise sought to emphasize sustainability initiatives – launching a recyclable aluminum bottled line at Expo West this year, joining plastic-packed portfolio counterparts across all of BlueTriton’s core brands.