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.
Author is long Glacier Water