Through this partnership, we know Primo well and are excited to have their outstanding team
join us. They share our commitment to quality, product innovation, marketing partnerships, and focus on sustainability. The addition of Primo offers attractive cross-selling opportunities and vertical integration for DS Services across water HOD,
retail, exchange, and filtration services.
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6.
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What should we expect the combined company (DS Services and Primo) to look like?
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DS and Primo share the same commitment to providing safe, high-quality and great tasting drinking water to their customers, and they operate
different, but very complementary, business models. We expect the combined company will operate in an integrated way. We will know more after the acquisition is complete and integration work begins.
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7.
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What does the Primo acquisition mean for DS Services filtration (point-of-use) business?
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Acquiring Primo will strengthen the filtration
business and gives DS even more access to filtration expertise, innovation and resources. This can enhance our POU business and create more opportunities for DS across many water categories, including filtration.
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8.
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What does Cotts announcement about S&D Coffee & Tea (exploring strategic
alternatives for S&D) mean for OCS associates?
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Cotts intention to explore strategic alternatives for the
S&D business has no impact or bearing on the Office Coffee Services business within DS. OCS is a business channel distinct and separate from S&D. Because of this, OCS associates will not be affected.
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9.
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What is the process and timeline for Cotts acquisition of Primo?
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We expect the transaction to close later in the first quarter of 2020, subject to typical conditions for transactions like this. As for
integration efforts, actual integration of operations must await closing. As such, please continue to operate as you always have in working towards continuing to grow our North American business.
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10.
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What should we expect regarding the integration of Primo into DS Services?
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As for integration efforts, actual integration of operations must await closing. As we refine our integration activities and timeline, which we
will share such plans with you.
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11.
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When will Cott rebrand as Primo?
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After the acquisition of Primo, Cott plans to assume the Primo name and stock ticker.
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12.
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Why is Cott rebranding as Primo? What impact will this have on Cotts businesses or family of
brands?
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Cott is rebranding, as it is often associated with its legacy businesses that Cott no longer operates, and
will assume the Primo name and brand. The Primo brand is a recognized and respected leader in sustainable water solutions and will help drive visibility in Cotts water businesses. The rebranding will only take place with the Cott name and will
not impact Cotts businesses, including DS Services, or family of brands, such as Sparkletts, Crystal Springs, Standard Coffee, Mountain Valley, and others.
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13.
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What does explore strategic alternatives mean?
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As part of Cotts annual strategic planning process, Cott reviews the industries, channels and product categories in which its businesses
operate, as well as the outlook of those businesses over the next three, five or even seven years, to determine the most likely route of success for each business and the Company overall. In the context of Cotts announcement for S&D
Coffee & Tea, exploring strategic alternatives means that Cott will review the options available to position S&D for success outside of Cotts portfolio of businesses. This could include a potential sale to a new owner.
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14.
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What does this announcement mean for the company and for strategic projects and initiatives?
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Cott has announced an agreement to acquire Primo, but this acquisition is expected to close later in the first quarter
of calendar year 2020. For now, it is business as usual for our DS Services associates. We expect our teams to continue delivering the highest quality service that our customers come to expect from us. As for integration efforts, actual integration
of operations must await closing, but the parties may collaborate on integration plans. As such, please continue to operate as you always have in working towards continuing to grow our business.
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15.
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What should I do if a customer, supplier or vendor asks a question about the transaction?
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Please refer customers or suppliers to the note they may have received that announced Cotts acquisition of Primo.
We value their partnership and look forward to working with them. It is business as usual for us, and we do not expect the acquisition to change that. Should they have additional questions, you can refer them to your manager.