Primo Water Authorizes a $50 Million Share Repurchase Plan – Buyback Wednesdays

Many businesses experience growth by progressively broadening their offerings through the launch of new products or acquisitions over time. At some point these companies start optimizing their bloated products portfolios to improve profitability or unlocks assets that can be reinvested in the core business. An example of such a company is Primo Water Corporation (PRMW), which divested all its peripheral enterprises to focus on its water supply solutions.

Key Insights:

• Primo Water’s strategic shift towards prioritizing its core expertise in water should drive future growth and profitability.
• The company’s performance during the pandemic when many offices were shut down underscores the business’s remarkable resilience.
• Declining debt-to-equity ratio coupled with the absence of debt maturities in the near future.

Primo Water Corporation (PRMW) is a leader in the realm of water solutions across North America and Europe. The company specializes in a wide spectrum of water-based offerings, catering to residential, commercial, and retail clientele. These encompass an array of products, including multi-gallon bottled water, water dispensers, self-service refill water machines, and water filtration appliances.

The genesis of the new incarnation of the company can be traced back to the acquisition of Primo Water Corporation by Cott Corporation, a prominent player in the beverage industry, engaged in the production, distribution, and sale of beverages. Cott  acquired Primo Water in March 2020 for $775 million, divested its non-water related assets and renamed itself Primo Water Corporation, along with a ticker symbol change to PRMW.

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