European private equity investment firm Castik Capital has completed its acquisition of Waterlogic Plc, a vertically integrated global designer, manufacturer, distributor and service provider of point-of-use drinking water purification and dispensing systems.
Castik aims to combine Waterlogic with recently acquired Angel Springs, a leading UK water cooler company, to start creating a leading global water cooler business.
Castik made a recommended cash offer for Waterlogic through Poseidon Bidco Ltd, an entity incorporated by the Castik-managed EPIC Funds, for its entire issued and to be issued share capital. The offer of 151 pence per share was accepted by 99.9% of the shares eligible to vote and approved on 16 December 2014.
Earlier in December, Castik Capital (through Hydrus Bidco Limited) completed the acquisition of privately-held Angel Springs, which will become a Waterlogic subsidiary, and John Dundon, the CEO of Angel Springs, will join the Waterlogic advisory board.
For the time being, Angel Springs will continue to operate under its own brand in the UK, and keep its current product offering.
“Waterlogic and Angel Springs both enjoy strong growth momentum – together, they will be even better placed to benefit from global opportunities,” said Michael Phillips, partner of Castik Capital.
“We expect steady growth in the water cooler market, and will support selective M&A when opportunities arise. Markets are fragmented in many countries, and given Waterlogic’s vertical integration, technological edge and excellent management team, we see significant scope for value-enhancing acquisitions and strong organic growth.”
The new combined entity will be led by the existing Waterlogic management with founder and group CEO Jeremy Ben-David, together with commercial CEO Peter Cohen. The Waterlogic and Angel Springs management teams have both significantly reinvested in the new business.
“While we are leaders in point of use, we are like David to the Goliaths of bottled water – we know we can bring better water to workplaces and homes, but we need scale and presence to achieve this,” said Jeremy Ben-David. “We want to be the global no 1 in all major markets, and this deal sets us on that path.”
Waterlogic already has an established international presence, with 780,000 units installed across 50 countries and market leading positions in Australia, USA, Scandinavia, Germany and France. Waterlogic and Angel Springs will be integrated to benefit from marketing and revenue synergies and the sharing of best practice.
Castik was advised on the Waterlogic transaction by Altium Capital (M&A and debt advisory), White & Case, EY, Ommax, Pöllath + Partners, Arendt & Medernach, and CNC Communications.
© FoodBev Media Ltd 2019
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