XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.25.1

BUSINESS COMBINATIONS | 3 Months Ended
--- | ---
Mar. 31, 2025
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Primo Water Corporation Arrangement Agreement and Merger As described in Note 1 - "Description of the Business", on November 8, 2024, BlueTriton and Primo Water combined their respective businesses through an all-stock transaction and became subsidiaries of the Company. The Transaction was accounted for as a business combination using the acquisition method with BlueTriton as the accounting acquirer in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”). ASC 805 provides that in a business combination effected through an exchange of equity interests, such as the Transaction, the entity that issues equity interests is generally the acquiring entity. However, under certain situations, the acquirer for accounting purposes may not necessarily be the entity that issues its equity interest to effect the business combination, particularly when the entity was newly created by one or more parties to a business combination. After careful consideration, BlueTriton was determined to be the accounting acquirer based on evaluation of the following facts and circumstances. In identifying BlueTriton as the accounting acquirer, the companies took into account many factors including: (i) the relative voting rights in the combined entity after the business combination, (ii) the combining entity whose single owner or organized group of owners holds the largest minority voting interest in the combined entity, (iii) the composition of the governing board of directors of the combined entity, (iv) the composition of the senior management of the combined entity, (v) if one of the combining entities is significantly larger than the other combining entity or entities, (vi) which entity initiated the business combination, (vii) whether the new company formed as a result of the business combination transfers cash or other assets or incurs liabilities as consideration in the transaction, and (viii) other qualitative factors. Although no single factor was the sole determinant, the primary factors that resulted in BlueTriton being designated as the accounting acquirer were the voting rights and ownership interest; the composition of the Board; the relative size and estimated market value of the businesses; and the background of the business combination which indicates that BlueTriton was the initiator of the business combination. Accordingly, assets acquired and liabilities assumed are measured at their acquisition date fair values. Primo Water is a leading North America-focused pure-play water solutions provider that operates largely under a recurring revenue model in the large format water category (defined as 3 gallons or greater). This business strategy is commonly referred to as “razor-razorblade” because the initial sale of a product creates a base of users who frequently purchase complementary consumable products. The Company believes that the Transaction will create a leading player in the pure-play healthy hydration industry, well-positioned in one of the largest components of the U.S. beverage category. The purchase price of $3,950.3 million has been allocated to the assets acquired and liabilities assumed based on the Company’s estimates of fair values as of the acquisition date. The excess of the purchase price over the aggregate fair values was recorded as goodwill. Goodwill arising from the acquisition is attributable to the value of the acquired assembled workforce and the premium paid. The portion of goodwill deductible for tax purposes is $68.3 million. The following table summarizes the preliminary allocation of purchase price to the identifiable assets acquired and liabilities assumed by the Company, with the excess of the purchase price over the fair value of Primo Water’s net assets recorded as goodwill:
($ in millions) | Fair Value
Purchase Price |
Estimated fair value of equity instruments: |
Class A common shares issued to Primo Water shareholders | $ | 3,883.2
Replacement share-based payment awards: |
Stock options | 12.7
Performance-based RSUs converted into time-based RSUs | 39.6
Time-based RSUs | 13.7
Other awards | 1.1
Total consideration | $ | 3,950.3
The table below summarizes the originally reported estimated acquisition date fair values, measurement period adjustments recorded and the final purchase price allocation of the assets acquired and the liabilities assumed:
($ in millions) | Originally Reported |  | Measurement Period Adjustments |  | Acquired Value
Cash, cash equivalents and restricted cash | $ | 665.9 |  | $ | — |  | $ | 665.9
Trade receivables | 144.1 |  | — |  | 144.1
Inventories | 53.1 |  | (1.1) |  | 52.0
Prepaid expenses and other current assets | 45.8 |  | — |  | 45.8
Current assets held for sale | 74.6 |  | — |  | 74.6
Property, plant, and equipment | 592.6 |  | (2.1) |  | 590.5
Operating lease right-of-use-assets | 150.9 |  | 2.5 |  | 153.4
Intangible assets | 1,836.7 |  | 0.1 |  | 1,836.8
Other non-current assets | 7.1 |  | — |  | 7.1
Non-current assets held for sale | 122.1 |  | — |  | 122.1
Current portion of long-term debt | (16.8) |  | — |  | (16.8)
Trade payables | (145.5) |  | — |  | (145.5)
Accruals and other current liabilities | (397.3) |  | — |  | (397.3)
Current portion of operating lease obligations | (27.2) |  | — |  | (27.2)
Current liabilities held for sale | (88.0) |  | — |  | (88.0)
Long-term debt, less current portion | (1,223.1) |  | 1.8 |  | (1,221.3)
Operating lease obligations, less current portion | (127.6) |  | (2.5) |  | (130.1)
Deferred income taxes | (420.9) |  | 0.3 |  | (420.6)
Other non-current liabilities | (18.2) |  | — |  | (18.2)
Non-current liabilities held for sale | (36.1) |  | — |  | (36.1)
Total identifiable net assets acquired | $ | 1,192.2 |  | $ | (1.0) |  | $ | 1,191.2
Goodwill | 2,758.1 |  | 1.0 |  | 2,759.1
Purchase price | $ | 3,950.3 |  | $ | — |  | $ | 3,950.3
Measurement period adjustments recorded during the three months ended March 31, 2025 include adjustments related to property, plant & equipment and intangible assets based on results of the preliminary valuations, adjustments to operating and financing lease right-of-use assets and obligations and inventory based on updated estimates used to calculate the acquisition date fair values, and adjustments to deferred income taxes as a result of the aforementioned items. The measurement period adjustments did not have a material effect on our results of operations in prior periods. The assets and liabilities acquired in the Transaction are recorded at their estimated fair values per preliminary valuations and management estimates and are subject to change when formal valuations and other studies are finalized. Estimated fair values for deferred tax balances are preliminary and are also subject to change based on the final valuation results. In addition, consideration for potential loss contingencies are still under review. The Company recorded $3.7 million and $5.8 million of acquisition-related costs associated with the Transaction during the three months ended March 31, 2025 and 2024, respectively. These costs are included in Acquisition, integration and restructuring expenses in the Condensed Consolidated Statement of Operations. Intangible Assets In the Company's determination of the fair value of intangible assets, we consider, among other factors, the best use of acquired assets, analysis of historical financial performance and estimates of future performance of the acquired business’ products. The estimated fair values of identified intangible assets are calculated considering both market participant expectations, using an income approach, as well as estimates and assumptions provided by the Company's management. The estimated fair value of customer relationships represents future after-tax discounted cash flows that will be derived from sales to existing customers of the acquired business as of the date of acquisition. Assumptions include projected revenue growth rates, operating expense rates, cost synergies, customer attrition rates, tax rates, contributory asset charges, and risk-adjusted discount rates. The estimated fair value of trademarks and trade names represents the future projected cost savings associated with the premium and brand image obtained as a result of owning the trademark or trade name as opposed to obtaining the benefit of the trademark or trade name through a royalty or rental fee. Assumptions include revenue growth rate, royalty rate, and discount rate. The estimated fair value of water rights represents the economic benefit resulting from the legal right to extract water from spring sources. The primary assumption is the discount rate. The following table presents the components of identifiable intangible assets associated with the Transaction and their estimated weighted-average useful lives:
($ in millions) | Estimated Fair Market Value |  | Weighted-Average Useful Life (Years)
Trademarks and trade names | $ | 594.7 |  | Indefinite
Definite-lived trademarks and trade names | 18.7 |  | 1 year
Customer relationships | 1,046.4 |  | 15 years
Water rights | 157.6 |  | 25 years
Software | 15.1 |  | 1 year
Other | 4.3 |  | 2 years
Total identifiable intangible assets | $ | 1,836.8 |  |
Goodwill The principal factor that resulted in recognition of goodwill was the basis of the purchase price in the Transaction, in part, on cash flow projections assuming the reduction of administration costs and the integration of acquired customers and products into the Company's operations, which is of greater value than on a standalone basis.

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationAndAssetAcquisitionAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
Name: | us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration