Luxembourg/London – Castik Capital, the European private equity investment firm – through Hydrus Bidco Limited, a company ultimately owned by the EPIC Funds, managed by Castik Capital – has signed an agreement to acquire Angel Springs, a leading UK water cooler company. The parties have agreed not to disclose financial details.
Angel Springs is based in Wolverhampton and rents out bottled water coolers and point-of-use water coolers, sells consumables, and provides related services. The group serves an installed base of more than 46,000 bottled water coolers and 14,000 point-of-use water coolers in the UK. The company has ten delivery depots, ensuring fast response times and a high level of client service.
“The acquisition of Angel Springs is a material building block in our strategy to form a globally leading water cooler company,” said Michael Phillips, Partner of Castik Capital. “Angel Springs has exhibited impressive growth over recent years – both organically and through acquisitions – and has a highly experienced management team, headed by CEO John Dundon.”
“We are pleased to be able to work with Castik Capital to ensure a continuation of the very positive performance of Angel Springs. Over recent months, we have been able to build a strong working relationship. We look forward to continuing the next stage of growth in partnership with Castik Capital,” said John Dundon, CEO of Angel Springs.
The water cooler industry is characterised by attractive growth and stable, recurring revenues in a fragmented market environment. Based on these characteristics, Castik Capital believes that a buy-and-build strategy coupled with robust organic growth can create significant value by forming a globally leading water cooler company in the coming years.
Castik has an investment horizon of up to ten years, longer than most other private equity funds. This enables Castik to focus resources on its portfolio companies and ensure sustainable, long-term value creation.
The announcement of the Angel Springs acquisition follows Castik Capital’s recent launch of the recommended cash acquisition of Waterlogic Plc by Poseidon Bidco Limited, a newly incorporated company owned by the EPIC Funds, which are managed by Castik Capital. Waterlogic Plc is a global distributor of point-of-use drinking water purification and dispensing systems, used in offices, factories, workplaces, hospitals, hotels, schools and restaurants
Castik is being advised by Altium (M&A and debt advisory), White & Case, EY, Pöllath + Partners, Arendt & Medernach, OMMAX, and CNC Communications. Angel Springs was advised by Deloitte LLP.
Castik Capital S.à r.l (“Castik Capital”) manages investments in private equity. Castik Capital is a European multi-strategy investment manager, acquiring significant ownership positions in European private and public companies, where long-term value can be generated through active partnerships with management teams.
Founded in 2014, Castik Capital is based in Luxembourg and focuses on identifying and developing investment opportunities across Europe. The advisor to Castik Capital S.à. r.l is Castik Capital Partners GmbH, based in Munich. Investments are made by the Luxembourg-based fund, EPIC I SLP, the first fund managed by Castik, which had its first close at EUR 625m in June 2014, and is targeting a final fund close of EUR 1bn in the coming months.