Primo Water completes merger with Glacier Water

Primo Water’s merger with Glacier Water was successfully completed today. So at least one part of the thesis was right: this was a deal that was not only very probable to close, but also probable to close fast. But the most important part of the story isn’t clear yet: what former Glacier Water shareholders will exactly receive. I think it’s going to work out as expected since in the Consent Solicitation Statement that was mailed just a week ago the company estimated a payment of $12.17 in cash, 0.87 of a share of Primo stock and 0.54 of a warrant to purchase Primo stock. So it appears that the company was indeed being slightly conservative in its earlier estimates since then it was expected a cash component of $12.13/share. I guess we will have some more clarity very soon, but since some shares will remain in escrow for one year it will take some time to know for sure how this deal plays out.

Disclosure

Author is long Glacier Water

19 thoughts on “Primo Water completes merger with Glacier Water

  1. Thomas Bachrach

    Well done on this one, AV (so far at least, knock on wood). Did you ever find out if the warrants will be trade-able?

    Reply
  2. Alpha Vulture Post author

    Seems like the final consideration was increased a little bit more:

    Under the terms of the Merger Agreement, at the effective time of the Merger, each outstanding share of Glacier common stock (other than shares for which appraisal rights under Delaware law were properly exercised) was converted into the right to receive approximately (i) $12.18 in cash, (ii) 0.87 of a share of Primo common stock and (iii) a warrant to purchase 0.55 of a share of Primo common stock (collectively, the “Per Share Merger Consideration”)

    Reply
        1. Rob Wang

          I got this in my interactivebrokers account. Are the warrants supposed to go to an exchange to be available to be sold?

          Reply
  3. ADL

    Did you have a look at OACQR or BHACR, mentioned on the AFCO discussion? The former performed as expected, the latter is still pre-deal… I’m convinced that “quality” of these is maybe less important than the deal itself, and so also have been looking at JSYNR and ANDAR. Do have a look at the chart of OACQR pre- and post-deal announcement.

    Reply
  4. Steven Emer

    according to their presentation, this is the consideration paid:
    FINAL TRANSACTION SUMMARY
    Total consideration paid of $273 million consisting of the following:
    $50.0 million in cash;
    $36.0 million consisting of 3.2 million of Primo common shares representing
    less than 11% of fully diluted shares outstanding;
    $81.0 million in Glacier Trust Preferred Securities, which bear interest at 9.1%,
    have a term through 2028 and allow holding payments for up to 5 years;
    $96.0 million of Glacier indebtedness that was retired; and
    2.0 million warrants for the purchase of Primo common shares at $11.88 per
    share
    I don’t see a provision for issuing more shares….can you figure this out?
    Thanks

    Reply
    1. Alpha Vulture Post author

      This presentation doesn’t contain anything new, these are just the same numbers that they used when the transaction was closed. The $ amount for the stock consideration also contains the shares that are still in escrow.

      Reply

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