Bulletin: Cott Corp. Ratings Unaffected By Plan To Acquire Primo Water Corp.

TORONTO (S&P Global Ratings) Jan. 13, 2020--S&P Global Ratings today said that its ratings on Mississauga Ont.-based Cott Corp. (B/Stable/--) are not affected by the company's announcement that it has entered into a definitive agreement to acquire Primo Water Corp. for approximately US$775 million. Primo is North America's leading single-source provider of multi-gallon bottled water and water dispensers in the U.S. and Canada. Cott also announced that it is evaluating certain strategic alternatives for its S&D Coffee and Tea business, including a sale of S&D, to transition Cott into a pure-play water solutions provider. We expect Cott to finance the acquisition with equity and cash, which will be funded through new debt or proceeds from the sale of S&D; we

...January 13, 2020 TORONTO (S&P Global Ratings) Jan. 13, 2020--S&P Global Ratings today said that its ratings on Mississauga Ont.-based Cott Corp. (B/Stable/--) are not affected by the company's announcement that it has entered into a definitive agreement to acquire Primo Water Corp. for approximately US$775 million. Primo is North America's leading single-source provider of multi-gallon bottled water and water dispensers in the U.S. and Canada. Cott also announced that it is evaluating certain strategic alternatives for its S&D Coffee and Tea business, including a sale of S&D, to transition Cott into a pure-play water solutions provider. We expect Cott to finance the acquisition with equity and cash, which will be funded through new debt or proceeds from the sale of S&D; we expect the transaction to close in first-quarter 2020. We believe the acquisition is consistent with Cott's strategy to transform into a pure-play water solutions provider. Even though the acquisition will narrow the...

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