Primo Brands stockholders to sell 47.5 million shares

TAMPA, Fla. and STAMFORD, Conn. - Primo Brands Corporation (NYSE: PRMB), a North American beverage company with a market capitalization of $5.2 billion and annual revenue exceeding $5.1 billion, announced today that two of its stockholders, affiliated with One Rock Capital Partners, will offer 47.5 million shares of Class A common stock for sale. This secondary offering is part of a shelf registration statement filed with the SEC. According to InvestingPro analysis, the company is currently trading slightly below its Fair Value, with a GOOD overall financial health score.

The offering’s proceeds will go entirely to the selling stockholders, with no shares being sold by Primo Brands itself. The timing of this offering follows an impressive 71% stock price return over the past year and a 36.5% gain in the last six months, as reported by InvestingPro. BofA Securities, Inc. and Morgan Stanley are the underwriters for this offering. They will offer the shares on the NYSE, over-the-counter markets, or through negotiated transactions.

Concurrently with this offering, Primo Brands has agreed to repurchase $100 million worth of its Class A common stock from the selling stockholders in a private transaction. The repurchase price will be the public sale price minus underwriting discounts and commissions. The Share Repurchase is contingent on customary closing conditions and the completion of the offering.

Primo Brands is a branded beverage company focused on healthy hydration, with a presence in every U.S. state and Canada, employing over 13,000 associates. The company’s dual headquarters are located in Tampa, FL, and Stamford, CT. Analysts maintain a bullish outlook on the company, with price targets ranging from $40 to $48 per share. For deeper insights into Primo Brands’ financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

The completion of this offering is not dependent on the Share Repurchase. The offering will only be made by prospectus supplement and accompanying prospectus, available through the SEC’s website or directly from the underwriters.

This announcement is for informational purposes and does not constitute an offer to sell or a solicitation to buy any security. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed.

The press release also contains forward-looking statements, which involve risks and uncertainties. Actual results could differ materially due to various factors, including the market conditions affecting the company’s stock and the ability to complete the proposed offering. Primo Brands cautions that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in such statements.

The information presented here is based on a press release statement from Primo Brands Corporation.

In other recent news, Primo Brands Corp. has been the focus of several analyst reports and corporate developments. RBC Capital Markets has maintained its Outperform rating with a $40 price target, citing strong fundamentals and minimal tariff exposure. BMO Capital Markets also reiterated its Outperform rating, setting a $45 target, and noted Primo Brands’ potential for robust growth despite slight adjustments in sales forecasts and EBITDA expectations. Truist Securities initiated coverage with a Buy rating and a $42 price target, highlighting the benefits of Primo Brands’ recent merger and projecting significant revenue and EBITDA growth for the coming years.

Moody’s recently downgraded Primo Water Holdings Inc.’s non-tendered backed senior unsecured notes from B1 to B3 but maintained a positive outlook for the company. The agency expects growth in revenue and earnings, driven by synergies from the merger. Additionally, Primo Brands announced a share repurchase plan of approximately $125 million, funded with cash. The company’s Non-Executive Chairman, Dean Metropoulos, expressed optimism about the premium brands category, which includes the popular Saratoga Spring Water. In a separate development, a viral TikTok video featuring this brand led to a notable increase in Primo Brands’ share value.

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