Primo Water and Glacier Water Services closed a merger agreement. Primo will acquire all outstanding shares of Glacier.

The total preliminary transaction consideration was approximately $263 million, consisting of approximately $50 million in cash, $36 million in Primo common stock, $177 million of net indebtedness and preferred stock being assumed or retired, and five-year warrants to purchase two million shares of Primo’s common stock at an exercise price of $11.88 per share.

BMO Capital Markets acted as financial advisor to Primo Water. Primo Water intends to fund the cash portion of the transaction consideration through a fully committed financing provided by Goldman Sachs Bank.

The agreement was unanimously approved by the board of directors of both companies. The transaction is expected to close in late 2016, subject to customary closing conditions.

Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan and K&L Gates acted as legal counsel to Primo Water. Primo also hired Montgomery, Coscia & Greilich as an integration consultant to assist in the integration planning.

J.P. Morgan Securities acted as financial advisor to Glacier. Ervin, Cohen & Jessup acted as legal counsel to Glacier.