By the Numbers
$2.0+ BILLION ANNUAL SALES
3600 direct-to-consumer routes
2.5+ MILLION CUSTOMERS
900+ Million Gallons of Water Delivered Annually
Primo is a pure-play water solutions provider with a leading volume-based national presence in the North American and European home and office delivery industry for bottled water, a top five position across point-of-use or filtration within our 21-country footprint, a leader in office coffee services as well as with leading positions in water dispensers, purified bottled water, and self-service refill drinking water in the U.S. and Canada. Our platform reaches over 2.5 million customers or delivery points with over 3,600 direct-to-consumer routes across North America and Europe supported by strategically located sales and distribution facilities and fleets, as well as wholesalers and distributors. This enables us to efficiently service residences, businesses, and small and large retailers.
Over the last five+ years, we have completely transformed our business into a pure play water solutions company with a significantly improved business profile with products and services in higher margin, growing categories, meaningfully lower customer concentration, consolidation opportunities at highly synergistic values as well as strong compound free cash flow generation.
In 2014, we acquired DS Services, the market leader in the growing U.S. home and office water delivery segment, as well as a top five position in U.S. office coffee services and a growing water filtration business.
After integrating the DS Services business, and in order to continue to execute our strategy, we acquired Aquaterra in January of 2016 (the leading home and office water delivery business in Canada) creating the largest North American home and office water delivery platform.
In June of 2016, we announced our move into European home and office water delivery with the acquisition of Eden Springs, Europe’s largest home and office water delivery business as well as a top five position in filtration and office coffee services, and in August of 2016, we announced the acquisition of S&D Coffee & Tea, a leading U.S. based manufacturer, distributor and service provider of custom coffee roasting, tea blending and liquid extract production.
In July of 2017, we announced that we had entered into a definitive agreement to sell our traditional beverage manufacturing business (“Cott Beverages”) to Refresco (Euronext: RFRG) for USD $1.25 billion. The transaction included the Cott North America, U.K., and Mexico businesses (excluding the RCI International division and its associated concentrate facility as well as the Aimia Foods division). The transaction closed on January 30, 2018.
In February 2019, we closed on the sale of our soft drink concentrate production facility and RCI International division (“Cott Beverages LLC”) to Refresco for USD $50 million. After completing this transaction, we have effectively divested of all the carbonated soft drinks business lines under our former traditional business.
In January of 2020, we announced that we had entered into a definitive agreement to acquire Primo Water Corporation (Nasdaq: PRMW), a leading provider of water dispensers, purified bottled water, and self-service refill drinking water in the U.S. and Canada, and we also announced that we had entered into a definitive agreement to sell S&D Coffee and Tea (“S&D”) to Westrock Coffee Company, LLC. The combination of the sale of S&D, along with the acquisition of Primo Water Corporation, positions our company to be a pure-play water solutions provider. As we transitioned to a pure-play water business model, we rebranded our corporate name to Primo Water Corporation to reflect the leading position we have in the growing and attractive water market.
With our significantly improved business profile, operations in growing categories, lower customer concentration, and reduced leverage and exposure to mature categories, we believe that these actions will allow us to generate mid single digit topline growth, margin expansion and strong free cash flow generation with financial metrics in line with our water peers. This is driven by growth of our pure-play water solutions businesses, the capture of additional synergies across our platforms, and incremental growth from small overlapping tuck-in acquisitions.
Organic Growth from “Better-for-You” product offerings (positioned in growing categories of water and water filtration solutions)
Focused innovation within product development, route logistics and technology creating further growth, cross-sell and customer service opportunities
Margin Expansion driven by scaled platforms with increased customer and route density
Focus on sustainability to drive efficiencies, inspire innovation, and build a platform for long-term growth and assured supply
Consolidation / customer list opportunities at highly synergistic values
Strong compound free cash flow generation