Company: PRMB
Filing Date: 2025-11-06
Form Type: 424B3
Source: 0001628280-25-049955
Chunk: 20

Company: Primo Brands Corp
Filing Date: 2025-11-06
Form: 424B3
Chunk 20
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 are subject to change when formal valuations and other studies are finalized. Estimated fair values for deferred tax balances are preliminary and are also subject to change based on the final valuation results. In addition, consideration for potential loss contingencies are still under review.

The Company recorded nil and $6.2 million of acquisition-related costs associated with the Transaction during the three and nine months ended September 30, 2025, respectively, and $7.7 million and $26.7 million of acquisition-related costs associated with the Transaction during the three and nine months ended September 30, 2024, respectively. These costs are included in Acquisition, integration and restructuring expenses in the Condensed Consolidated Statement of Operations.

Intangible Assets

In the Company's determination of the fair value of intangible assets, we consider, among other factors, the best use of acquired assets, analysis of historical financial performance and estimates of future performance of the acquired business’ products.

The estimated fair values of identified intangible assets are calculated considering both market participant expectations, using an income approach, as well as estimates and assumptions provided by the Company's management.

The estimated fair value of customer relationships represents future after-tax discounted cash flows that will be derived from sales to existing customers of the acquired business as of the date of acquisition. Assumptions include projected revenue growth rates, operating expense rates, cost synergies, customer attrition rates, tax rates, contributory asset charges, and risk-adjusted discount rates.

The estimated fair value of trademarks and trade names represents the future projected cost savings associated with the premium and brand image obtained as a result of owning the trademark or trade name as opposed to obtaining the benefit of the trademark or trade name through a royalty or rental fee. Assumptions include revenue growth rate, royalty rate, and discount rate.

The estimated fair value of water rights represents the economic benefit resulting from the legal right to extract water from spring sources. The primary assumption is the discount rate.

The following table presents the components of identifiable intangible assets associated with the Transaction and their estimated weighted-average useful lives:

| ($ in millions)                           |     | Estimated Fair Market Value |     |         |     | Weighted-Average Useful Life (Years) |
|:------------------------------------------|:----|:----------------------------|:----|--------:|:----|:-------------------------------------|
| Trademarks and trade names                |     | $                           |     |   594.8 |     | Indefinite                           |
| Definite-lived trademarks and trade names |     |