COT - Why Shares of Primo Water Surged Today
Shares of Primo Water (NASDAQ: PRMW) rose on Monday after Cott Corp. (NYSE: COT) announced that it had agreed to acquire the water dispenser company. Primo Water stock was up 24.3% at 1:40 p.m. EST today, while shares of Cott were down 5.4%.
Cott will pay $14 per share for each share of Primo, comprised of $5.04 in cash and 0.6549 shares of Cott. Shareholders can elect to instead receive $14 in cash or 1.0229 shares of Cott. The deal is expected to close in March.
The acquisition is part of Cott's plan to transition into a pure-play water solutions provider. Cott will rebrand its corporate name to Primo Water after the acquisition is complete.