Primo Water Corporation acquires Mountain Valley Water Company

By Tim Bamberger and Isabelle Duerbeck (King’s College London) and Ryan Horlick, Eugene (Christina) Lee, and Britney Cheng (The University of Michigan)


Overview of the deal

Acquirer: Primo Water Corporation

Target: Mountain Valley Water Company of Los Angeles (MVLA)

Total Transaction Size: Undisclosed figure

On October 13, 2020, Primo Water Corporation announced that its wholly-owned subsidiary Primo North America, has acquired all of the assets of Mountain Valley Water Company of Los Angeles (MVLA) for an undisclosed amount. With Primo Water Corporation being a leading water and water filtration services provider in North America and Europe, the acquisition of MVLA will add 8,000 new customers to Primo’s existing customer base and will enhance its presence in the Los Angeles area. In a statement released by Primo Water Corporation, the company states that existing MVLA customers will still be able to purchase Mountain Valley Spring Water products, in addition to Primos product-offering.

"MVLA shares our focus on offering high-quality products and delivering superior customer service and strengthens our footprint and customer density in southern California," - Dave Muscato, President of Primo NA

Company Details: Acquirer – Primo Water Corporations

Primo Water Corporation, formerly Cott Corporation, is an international water services company with strong positions in the US, Canada and Europe. Primo Water Corporation operates multiple water, tea, coffee, extracts and filtration equipment brands, supplying approximately 2.5 million customers in 21 countries, with revenues of over $2 Billion.

Founded in 1952, headquartered in Tampa, Florida (USA)

CEO: Tom Harrington

Number of employees: 10,000+

Market Cap: $2,285 bn (as of 17/10/2020)

EV: $3.75 bn

LTM Revenue: $2,394,500,000

Company Details: Target - Mountain Valley Water Company of Los Angeles

Mountain Valley Water Company of Los Angeles is a major water service distributor in the Los Angeles area, and the largest distributor of Mountain Valley in the US. Its main brand, Mountain Valley Spring Water, is already owned by Primo Water Corporation, since its purchase in 2018 by the firm’s DS Services arm for $75.8 million, back when the company was still known as Cott Corporation.

Founded in 1983, headquartered in Downey, Los Angeles, CA (USA)

CEO: Mark Scott (President)

Market Cap: no data (privately held)

‘EV: no data (privately held)

LTM EBITDA: no data (privately held)