Company: PRMB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0002042694-25-000007
Chunk: 11

Company: Primo Brands Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 and ownership interest; the composition of the Board; the relative size and estimated market value of the businesses; and the background of the business combination which indicates that BlueTriton was the initiator of the business combination.Accordingly, assets acquired and liabilities assumed are measured at their acquisition date fair values.Primo Water is a leading North America-focused pure-play water solutions provider that operates largely under a recurring revenue model in the large format water category (defined as 3 gallons or greater). This business strategy is commonly referred to as “razor-razorblade” because the initial sale of a product creates a base of users who frequently purchase complementary consumable products. The Company believes that the Transaction will create a leading player in the pure-play healthy hydration industry, well-positioned in one of the largest components of the U.S. beverage category.The purchase price of $3,950.3 million has been allocated to the assets acquired and liabilities assumed based on the Company’s estimates of fair values as of the acquisition date. The excess of the purchase price over the aggregate fair values was recorded as goodwill. Goodwill arising from the acquisition is attributable to the value of the acquired assembled workforce and the premium paid. The portion of goodwill deductible for tax purposes is $68.3 million. The following table summarizes the preliminary allocation of purchase price to the identifiable assets acquired and liabilities assumed by the Company, with the excess of the purchase price over the fair value of Primo Water’s net assets recorded as goodwill:($ in millions)Fair ValuePurchase PriceEstimated fair value of equity instruments:Class A common shares issued to Primo Water shareholders$3,883.2Replacement share-based payment awards:Stock options12.7Performance-based RSUs converted into time-based RSUs39.6Time-based RSUs13.7Other awards1.1Total consideration$3,950.3

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The table below summarizes the originally reported estimated acquisition date fair values, measurement period adjustments recorded and the final purchase price allocation of the assets acquired and the liabilities assumed:($ in millions)Originally ReportedMeasurement Period AdjustmentsAcquired ValueCash, cash equivalents and restricted cash$665.9$—$665.9Trade receivables144.1—144.1Inventories53.1(1.1)52.0Prepaid expenses and other current assets45.8—45.8Current assets held for sale74.6—74.6Property, plant, and equipment592.6(2.1)590.5