Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 130

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 130
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 to continuing operations.

At the
beginning of 2023, Primo Water’s business operated through two reporting segments: (i) North America, which included its DS Services of America, Inc. (“DSS”), Aquaterra Corporation (“Aquaterra”), and

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Mountain Valley Spring Company (“Mountain Valley”) businesses, and (ii) Europe, which included the European business of Eden Springs Netherlands B.V. (“Eden Europe”), and
Primo Water’s Decantae and Fonthill businesses. The Other category included the Israel business of Eden (“Eden Israel”), and Primo Water’s Aimia and Farrers businesses, as well as its corporate oversight function and other
miscellaneous expenses.

As a result of the board approved plan to sell all of Primo Water’s International Businesses, during the
fourth quarter of 2023, Primo Water reviewed and realigned its reporting segments to exclude the businesses within discontinued operations which reflects how the business will be managed and results will be evaluated by the Chief Executive Officer,
who is the company’s chief operating decision maker. Following such review, Primo Water’s one reporting segment is North America, which includes its DSS, Aquaterra, and Mountain Valley businesses. The Other category includes Primo
Water’s corporate oversight function and other miscellaneous expenses. Segment reporting results have been recast to reflect these changes for all periods presented.

Impact of General Economic and Geopolitical Conditions

Primo Water’s operations and supplier relationships expose it to risks associated with disruptions to global supply chains, labor
shortages, inflation and the ongoing Russia/Ukraine and Israel/Hamas wars, all of which are likely to continue to create challenging conditions for Primo Water’s business, through increased costs, 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