Item 2.05. Costs Associated with Exit or Disposal Activities.

On June 11, 2020, the Board of Directors of Primo Water Corporation (the "Company") approved a plan intended to optimize synergies from the Company's transition to a pure-play water company following the previously disclosed acquisition of the legacy Primo business and to mitigate the negative financial and operational impacts of the COVID-19 pandemic, including implementing headcount reductions and furloughs in North America, Europe, and Israel. The Company expects to incur approximately $19.0 million in severance and other related costs, all of which are expected to result in cash expenditures and are expected to be fully paid by the end of 2020. These actions are being implemented as part of a comprehensive review of the Company's operations and are intended to streamline and reduce the Company's operating cost structure and capitalize on previously communicated acquisition synergies yielding $35.0 million in annual run-rate synergies starting in 2022.

Safe Harbor Statements

This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 conveying management's expectations as to the future based on plans, estimates and projections at the time the Company makes the statements. Forward-looking statements involve inherent risks and uncertainties and the Company cautions you that several important factors could cause actual results to differ materially from those contained in any such forward-looking statement. The forward-looking statements contained in this Current Report on Form 8-K include, but are not limited to, costs incurred in connection with the plan. The forward-looking statements are based on assumptions regarding management's current plans and estimates. Management believes these assumptions to be reasonable, but there is no assurance that they will prove to be accurate. Factors that could cause actual results to differ materially from those described in this Current Report on Form 8-K include, among others, expected synergies and cost savings are not achieved or achieved at a slower pace than expected; integration problems, delays or other related costs; retention of customers and suppliers; risks related to public health and safety events, including the COVID-19 outbreak; the Company's ability to reduce costs in connection with COVID-19; and the Company's ability to manage its supply chain, manufacturing, distribution or other business processes in light of the COVID-19 outbreak. The foregoing list of factors is not exhaustive. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors contained in the Company's Annual Report on Form 10-K and its quarterly reports on Form 10-Q, as well as other filings with the securities commissions. The Company does not undertake to update or revise any of these statements considering new information or future events, except as expressly required by applicable law.

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