Tallahassee, FL 11/29/11 (
StreetBeat) -- Primo Water Corporation (
Nasdaq: PRMW), a leading producer of innovative beverage solutions in North America, and Sparkling Drink System Innovation Center LTD, an international marketing and manufacturing company specializing in home beverage carbonation products, today announced a strategic alliance. The strategic alliance will include mutual R&D, marketing, manufacturing and distribution of the parties' respective home beverage carbonation products and related accessories. Those products include 40 appliances utilizing five different beverage technologies. Through cross-distribution and licensing agreements, the parties' respective products will be made available throughout North America and mutually-agreed territories outside of North America.
Primo Water is a leading provider of purified water and ENERGY STAR(R)-rated home water dispensers and home beverage carbonating appliances with combined distribution in more than 20,000 leading retail locations in North America. Primo's newest innovation, Primo Flavor Station 500(TM), is a home beverage system providing patented, single serve, 100 percent naturally flavored beverages.
SDS-IC, based in Tel Aviv, Israel, offers complementary technologies, appliances and consumables including a new syrup dispenser called "squeeZZe," focused on home beverage carbonation systems. The SDS-IC appliances utilize the innovative FSS and FSS Turbo technology that provide an adjustable and more efficient way to carbonate beverages. SDS-IC distributes its products internationally in several countries including Australia, Belgium, France, Italy, the Netherlands and North Africa. SDS-IC also has its own manufacturing facilities in China and multiple international technology patents.
"Our alliance with SDS-IC is a significant step forward in our development of the highest quality and full line of home beverage carbonation products. We believe SDS-IC is one of the most experienced companies in this product market with its principals having managed home beverage carbonation systems in Europe since 1999," said Billy Prim, Primo Water's President and CEO. "This strategic alliance will help bring multiple premium beverage products and appliances, many under the Primo brand, to consumers worldwide and allow both Primo and SDS-IC to create new consumers in new markets, which we believe will lead to long-term growth."
The strategic alliance includes cross-distribution and licensing agreements pursuant to which Primo Water will distribute its products outside of North America in certain mutually agreed territories exclusively through SDS-IC and certain SDS-IC products will be distributed in North America exclusively by Primo Water. The alliance will allow each party to market and sell a complete line of home beverage products and will capitalize on each party's expertise in the appliance, flavor and carbonation categories. The cross-distribution and licensing agreements provide for total minimum purchases of $20 million annually. These minimum purchases consist of a commitment by SDS-IC to purchase products from or pay license fees to Primo Water in the amount of $10 million annually and a commitment by Primo Water to purchase products from or pay license fees to SDS-IC in the amount of $10 million annually.
"SDS-IC is committed to offering consumers worldwide a complete range of products to enable the creation of the beverages they desire at an economical price and we believe our alliance with Primo Water is the perfect addition to our existing line of innovative home beverage carbonation solutions," stated Serge Bueno, SDS-IC's Chairman and CEO. "We expect Primo's Flavor Station 500(TM) to resonate extremely well with our international consumer base and look forward to expanding the distribution of the complete line of SDS and Primo beverage appliances deeper into new and existing markets."
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Shawshank, VA 3/12/12 (StreetBeat) -- Primo Water Corporation (Nasdaq:PRMW), a leading provider of water dispensers, environmentally responsible bulk bottled water and premier sparkling beverage appliances, today announced it has received a commitment from a senior lender to enter into a new long-term $20 million senior revolving credit facility. Also, the Company expects to close a term loan for up to an additional $15 million with a separate lender, secured by certain fixed assets of the Company. The facilities are expected to have a four year term and will include customary terms and covenants, and are expected to close within 30 days. The Companyexpects to use the loan proceeds to pay off its existing senior credit facility and for general working capital purposes.