Bulletin: Primo Water Corp.'s Sale Of Its European Business Will Delay Its Deleveraging Timeline

TORONTO (S&P Global Ratings) Nov. 2, 2023--S&P Global Ratings today said that Primo Water Corp.'s (B+/Positive/--) proposed sale of its European business to Osmosis Holdings L.P. (d/b/a Culligan International; B/Stable/--) for $575 million will increase the company's operational focus on its core pure-play North American water business. Our ratings and outlook on Primo Water are unaffected by the transaction, which we expect will close by Dec. 31, 2023, subject to the receipt of regulatory approvals and the satisfaction of other customary closing conditions. The company intends to use the proceeds from the sale to repay the outstanding balance on its cash flow revolver, complete acquisitions (tuck-ins and strategic) in the North American water-direct segment, and fund share repurchases. Based on

...November 2, 2023 TORONTO (S&P Global Ratings) Nov. 2, 2023--S&P Global Ratings today said that Primo Water Corp.'s (B+/Positive/--) proposed sale of its European business to Osmosis Holdings L.P. (d/b/a Culligan International; B/Stable/--) for $575 million will increase the company's operational focus on its core pure-play North American water business. Our ratings and outlook on Primo Water are unaffected by the transaction, which we expect will close by Dec. 31, 2023, subject to the receipt of regulatory approvals and the satisfaction of other customary closing conditions. The company intends to use the proceeds from the sale to repay the outstanding balance on its cash flow revolver, complete acquisitions (tuck-ins and strategic) in the North American water-direct segment, and fund share repurchases. Based on our forecast, the transaction will modestly delay the company's deleveraging plan, which could push back the resolution of our positive outlook to the end of 2024 or later. The...

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