Castik Capital planning global water cooler company with Waterlogic acquisition
Investment bank Altium has advised Castik Capital on its GBP122.6m recommended cash acquisition for the entire share capital of Waterlogic, a distributor of drinking water purification and dispensing systems.
The Waterlogic acquisition was made through Poseidon Bidco, a newly formed entity incorporated by Castik-managed EPIC Funds, and was accepted by 99.9% of the shares eligible to vote.
Earlier in December, Castik completed its acquisition of leading UK water cooler company Angel Springs and over time aims to combine the two businesses to create a leading global brand. As part of the latest acquisition, Angel Springs will become a Waterlogic subsidiary and John Dundon, the CEO of Angel Springs, will join the company’s advisory board. Initially, Angel Springs will continue to operate under its own brand in the UK and will retain its existing product offering.
Waterlogic is a leading vertically-integrated designer, distributor and provider of drinking water purification and dispensing systems, offering a broad portfolio of own-branded and third-party products to commercial customers across the globe. Since its AIM IPO in July 2011, Waterlogic has significantly expanded its commercial business through a combination of organic growth and the completion of 11 acquisitions in Europe, the USA and Australia. Founded in 1992, the company has deploye dover 780,000 units across 50 countries.
Castik Capital is a Luxembourg-based private equity firm which specialises in acquiring significant ownership positions in European private and public companies. Founded in 2014, the company’s partners have over 100 years of experience and have invested over EUR2bn of equity capital in Europe and are targeting EUR1bn for their current fund.
The deal will enable Waterlogic to continue delivering organic growth in an attractive marketplace, while providing opportunities for further expansion through consolidation.
Michael Phillips, Partner of Castik Capital, says: “Waterlogic and Angel Springs both enjoy strong growth momentum – together, they will be even better placed to benefit from global opportunities.
“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.”
Altium acted as exclusive corporate finance advisor to Castik Capital on the transaction. Phil Adams led the Altium team comprising Managing Director Adrian Reed, Director Paul Lines, Analyst Tom Battersby and Richard Clark, Managing Director of Debt Advisory.
Phil Adams, CEO of Altium, says: “Castik’s strategy to create a leading global water cooler brand is ambitious and innovative, and the firm’s latest acquisition is a significant step to achieving this goal by tapping into a rapidly growing market.
“As with so many of our clients, the long-term relationship we have enables us to provide the highest quality advice, and we look forward to working further with Castik as it progresses its business strategy.”