US spring water producer BlueTriton, now called Primo Brands after combining with Primo Water, is shutting a bottling site in Canada.
A company spokesperson confirmed it had “initiated a public sale process” for its site near the city of Guelph in Ontario.
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Operations are expected to cease by the end of January.
The spokesperson added the move “was a difficult decision” and was “unrelated to our merger with Primo”.
Just Drinks has asked the Poland Spring water bottler to confirm why the facility is being shut and how many jobs are at risk.
According to its website, it formerly bottled water at the Aberfoyle plant near Guelph using water sourced from nearby Erin and Aberfoyle springs.
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By GlobalDataOther factories managed by BlueTriton in Canada include its Hope facility in British Columbia.
The spokesperson added: “We will continue to serve our customers through this transition period and will continue to have operations in Canada in our Hope facility, which will serve our business in the Western provinces as well as some of our US Pacific Northwest business.”
BlueTriton and Primo Water announced plans to join forces and become an enlarged business in June. The deal was completed last week.
Under the combined group, BlueTriton was expected to take hold of 57% of shares, while the latter owns the remaining 43%.
Primo Brands employs over 11,000 people with headquarters in Tampa, Florida and Stamford, Connecticut, and over 50 production sites across the US and Canada.
Commenting on the business tie-up on a conference call in June, Robbert Rietbroek, the CEO of the then Primo Water and now chief executive of Primo Brands, said the new business would “add competitiveness to the market”.
He added that the business would hold “a share… that was less than 3% of an overall $252bn beverages category in North America”.
The net revenue of the new company is expected to sit at $6.5bn, while adjusted EBITDA will be $1.5bn. The deal will include up to $200m in estimated cost synergies, achieved over the next three years.
