Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 129

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 129
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Ingredient and packaging costs
represent a significant portion of Primo Water’s cost of sales. These costs are subject to global and regional commodity price trends. Primo Water’s most significant commodities are PET resin, HDPE and polycarbonate bottles, caps and
preforms, labels, and cartons and trays. Primo Water attempts to manage its exposure to fluctuations in ingredient and packaging costs by entering into fixed price commitments for a portion of its ingredient and packaging requirements and
implementing price increases as needed.

In 2023, Primo Water’s capital expenditures were devoted primarily to supporting growth in
its business, maintaining existing facilities, and making equipment upgrades.

International Business Sales

On November 2, 2023, Primo Water entered into a Share Purchase Agreement (the “Purchase Agreement”) with a subsidiary of the
Culligan Group providing for the sale of Carbon Luxembourg S.à.r.l. and certain of its subsidiaries (the “European Business”). On December 29, 2023, Primo Water completed the sale of the European Business for aggregate deal
consideration of $575.0 million, adjusted for customary purchase price adjustments, resulting in total cash consideration of $565.9 million (the “European Divestiture”). The European Divestiture did not include Primo Water’s
interest in Aimia Foods Limited (“Aimia”), Decantae Mineral Water Limited (“Decantae”), Fonthill Waters Ltd (“Fonthill”), John Farrer & Company Limited (“Farrers”), and the portions of the Eden
Springs Netherlands B.V. business located in the United Kingdom, Israel, and Portugal (collectively the “Other International Businesses”). On June 7, 2024, Primo Water sold its interest in the Aimia and Farrers businesses, and on
July 3, 2024, Primo Water sold the Portugal business. The European Business and the Other International Businesses are collectively the “International Businesses.” These deals are a part of several transactions occurring in 2024 as
part of a plan approved by the board of Primo Water to sell all of its international businesses, representing a strategic shift in Primo Water’s operations. Accordingly, the International Businesses are presented herein as discontinued
operations for all periods presented. See Note 2 to Primo Water’s interim unaudited Consolidated Financial Statements for additional information on discontinued operations. Unless otherwise noted, discussion within this Management’s
Discussion and Analysis of Financial Condition and Results of Operations of Primo Water relates