JZ Capital Partners Limited has sold Paragon Water Systems (Paragon) to Culligan Water for USD16.2 million in gross proceeds (including escrows), representing an increase of approximately USD3.7 million, or 29.6 per cent on the carrying value of Paragon of approximately USD12.5 million as of 31 January 2018.
In addition to increasing JZCP’s overall NAV as of 31 January 2018 by 0.4 per cent, this transaction represents a gross multiple of invested capital (MOIC) of approximately 1.8x and a gross internal rate of return (“IRR”) of approximately 18.4 per cent.
Founded in 1988 and headquartered in Tampa, Florida, Paragon develops and produces “point-of-use” water filtration products for leading global Original Equipment Manufacturer (“OEM”) clients, big brand suppliers to specialty and big box retailers, direct sales organisations and companies with national or international water filtration dealership networks.
David Zalaznick, JZCP’s Founder and Investment Adviser, says: “We are pleased with this realisation above JZCP’s net asset value. One of our objectives is to demonstrate to shareholders and potential new investors that our NAV is conservatively valued. We hope to continue our realisation cycle and build liquidity for our previously stated goals of making new investments, paying down debt and buying back stock.”
