Primo Water stock falls on 20 million share secondary offering

Primo Brands Corporation (NYSE:PRMB) shares fell 5.6% Thursday after a major stockholder announced plans to sell 20 million shares in an underwritten secondary offering.

The selling stockholder, an affiliate of One Rock Capital Partners, intends to offer the shares of Class A common stock pursuant to the company’s shelf registration statement filed with the Securities and Exchange Commission. The selling stockholder will receive all net proceeds from the offering, while Primo Brands itself is not selling any shares.

Morgan Stanley is serving as the underwriter for the proposed offering.

Separately, Primo Brands entered into a stock purchase agreement with the selling stockholder to repurchase $10 million of its Class A common stock in a private transaction at the public offering price less underwriting discounts and commissions. The repurchased shares will no longer be outstanding after the offering. The share repurchase closing is expected to occur concurrently with the offering and is contingent on customary closing conditions and completion of the offering. However, the completion of the offering is not conditioned upon the share repurchase.

Primo Brands is a North American branded beverage company focused on healthy hydration, with operations across the U.S. and Canada. The company employs more than 12,000 associates and maintains dual headquarters in Tampa, Florida, and Stamford, Connecticut.