Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 124

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 124
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, increased associate attrition and vacancies,
lower consumer spending, volatility in financial markets or other impacts. While Primo Water has taken steps to minimize the impact of these increased costs, global supply chain disruption may deteriorate and inflationary pressures may increase,
which could adversely affect Primo Water’s business, financial condition, results of operations and cash flows. To date, Primo Water’s operations in Israel have not been materially impacted by the Israel/Hamas war, though Primo Water
continues to monitor the situation closely and prioritize the safety of its associates.

Divestiture Transactions

On July 3, 2024, Primo Water completed the sale of its Portugal business for aggregate deal consideration of $19.2 million, resulting
in a gain on sale in the amount of $7.7 million which was recorded in Net income from discontinued operations, net of income taxes on the Consolidated Statements of Operations during the three and nine months ended September 28, 2024.

On June 7, 2024, Primo Water completed the sale of its Aimia and Farrers businesses for aggregate deal consideration of
$75.5 million, resulting in a loss on sale in the amount of $2.0 million which was recorded in Net income from discontinued operations, net of income taxes on the Consolidated Statements of Operations during the nine months ended
September 28, 2024.

On November 2, 2023, Primo Water entered into the Purchase Agreement providing for the sale of the European
Business to a subsidiary of the Culligan Group. As described above, the European Divestiture closed on December 29, 2023.

During the
second quarter of 2022, Primo Water’s board of directors approved the exit from its business in Russia. Accordingly, Primo Water recorded an impairment charge of $11.2 million during the second quarter to reduce the carrying value of the
assets to the estimated fair value less costs to sell. The exit from Primo Water’s business in Russia was completed during the third quarter of 2022.

In the second quarter of 2022, as part of Primo Water’s overall strategy to increase profitability and further reduce its environmental
footprint, Primo Water exited the North America single-use retail bottled water category, which consisted primarily of 1-gallon, 2.5-gallon, and case-pack water. The exit did not affect Primo Water’s large format exchange, refill, and dispenser business or its Mountain Valley brand