By divesting a significant portion of its international operations to Culligan for an all-cash transaction valued at up to $575m, Primo Water aims to enhance its financial profile and accelerate the achievement of its 2024 targets
Culligan completes acquisition of Primo Water's EMEA operations, excluding UK, Portugal, and Israel. (Credit: Kikidell/Wikimedia Commons)
Culligan, a provider of sustainable water solutions and services, has finalised its acquisition of the majority of Primo Water’s businesses in the Europe, Middle East, and Africa (EMEA) region, excluding operations in the UK, Portugal, and Israel.
This strategic move significantly expands Culligan’s presence in 12 countries where it already operates while marking its entry into new markets in Poland, Latvia, Lithuania, and Estonia.
The integration of these newly combined businesses in Europe will be spearheaded by Jeremy Ben-David, CEO of Culligan EMEA.
Ben-David said: “This transaction accelerates our ability to create a sustainable approach to water for years to come.
“We’re pleased to build on the success Primo Water has enjoyed in the region and are eager to welcome Primo Water Europe management, their experienced teams and their customers to Culligan as we strive to make water a transformative force for people and our planet.”
With this acquisition, Culligan strengthens its foothold in countries such as the Netherlands, Belgium, Denmark, Norway, Sweden, Finland, France, Luxembourg, Switzerland, Spain, Germany, and Hungary.
Additionally, the company now extends its services into Poland, Latvia, Lithuania, and Estonia. Currently, Culligan services a staggering 1.35 million installed water coolers, boasting a workforce of 8,000 employees and strategic locations and production sites across EMEA.
Primo Water, on the other hand, retains its businesses in the UK, Portugal, and Israel, along with Aimia Foods.
Culligan International chairman and CEO Scott Clawson said: “This is a significant milestone in our ongoing development. It enhances our scale and capacity within the EMEA region, reaffirming our ambition and long-term vision to bring more consumers the Culligan water they love.
“Culligan and Primo Water share the same passion for providing healthy, sustainable and better-tasting water that inspires healthier lives, healthier communities and a healthier planet.”
The acquisition, announced in November 2023, underscores Primo Water’s strategic decision to streamline its focus on its pure-play North American water business.
By divesting a significant portion of its international operations to Culligan for an all-cash transaction valued at up to $575m, Primo Water aims to enhance its financial profile and accelerate the achievement of its 2024 targets.
These targets include improvements in adjusted gross margins, adjusted EBITDA, adjusted EBITDA margins, and adjusted free cash flow conversion.
Furthermore, the move grants Primo Water the financial flexibility to pursue organic growth, reduce leverage, return capital to shareholders, accelerate accretive tuck-in acquisitions, and explore strategic opportunities complementary to its core North American water business.
This transaction not only marks a significant milestone in Primo Water’s transformation but also positions Culligan as a key player in the EMEA water solutions market, poised for further growth and expansion in the region.