06:51 AM EDT, 06/17/2024 (MT Newswires) -- Primo Water ( PRMW ) and an affiliate of BlueTriton Brands on Monday agreed to merger in an all-stock transaction that will create a North American healthy hydration company.

The boards of both companies unanimously approved the deal. Upon closing, Primo Water ( PRMW ) shareholders and holders of incentive equity will own 43% of the fully diluted shares of the newly combined company with BlueTriton shareholders owning the remaining 57%.

Primo said the transaction will create an estimated US$200 million in run-rate cost synergies. The combined company is expected to have $6.5 billion in net revenue and $1.5 billion in adjusted Ebitda, including estimated synergies, for the 12-month period ended March 31, 2024

Primo added the deal will give it an "increased presence, leading portfolio of iconic brands, diversified product offerings and enhanced distribution capabilities position the combined company for sustained long-term growth."

Primo Water ( PRMW ) intends to pay a special dividend of up to $133 million ( $0.82 per share) to its shareholders prior to closing.

Primo was at last look up 0.45% in U.S. premarket trading.