Waterlogic has entered into an agreement to acquire the water cooler division of PHS Group (‘PHS Waterlogic’) for an undisclosed amount. PHS Waterlogic is a long established water cooler business active in the United Kingdom, Ireland and the Netherlands. The business exclusively distributes Waterlogic-manufactured and branded point-of-use water (“POU”) coolers, and was originally acquired by PHS Group from Waterlogic in 2000. PHS Waterlogic adds a total of c. 90,000 POU water coolers on rental and service contracts to Waterlogic’s existing operations.
The UK business of PHS Waterlogic will be merged with Angel Springs, one of the leading UK bottled water and point-of-use businesses acquired by Waterlogic in December 2014. The combined Waterlogic UK operation will be able to deliver unparalleled service to the workplace hydration market, with the most comprehensive offer in point-of-use water coolers, bottled water coolers, and under-the-sink filtration systems. “The UK business of PHS Waterlogic is an excellent strategic fit with our existing Angel Springs footprint,” said John Dundon, CEO of Angel Springs. “The combination of national reach with local density will ensure we are able to continue serving our new and existing customers in the best possible way. The full and combined range of bottled water coolers, point-of-use and under-the-sink systems means we can offer every organisation a solution for virtually every situation.
The Irish and Dutch businesses of PHS Waterlogic add two new direct rental and service markets, in addition to Waterlogic’s existing operating base in nine countries around the world.
“The acquisition of PHS Waterlogic demonstrates our strong commitment to building a global water cooler company through a buy-and-build strategy coupled with organic growth,” said Jeremy Ben-David, Founder and Group CEO of Waterlogic. “The addition of 90,000 water coolers, two new direct markets in the Netherlands and Ireland, and the creation of a very significant Waterlogic UK operation, able to deliver excellent service nationally and locally, represents a substantial milestone on Waterlogic’s path towards becoming the most preferred supplier for workplace drinking water.”
Waterlogic was acquired in January 2015 by funds managed by Castik Capital, the European private equity investor. The acquisition of PHS Waterlogic is the sixth manifestation of the company’s buy-and-build strategy and follows the acquisitions of Clearwater Filter Systems, a subsidiary of Just Water International and Unlimited Water in Australia, Clear Water in Norway and Greenworks Water in the UK in 2015, as well as Castik’s acquisition of Angel Springs, the UK distributor of bottled and point-of-use water coolers, in December 2014. Castik Capital believes that this buy-and-build strategy in a fragmented market, coupled with tenacious organic growth in an industry characterised by attractive growth and recurring revenues, can create significant value. By forming a globally leading water cooler company in the forthcoming years, Waterlogic will be best placed to meet the growing demand.
Waterlogic and Castik were advised on the transaction by Altium (M&A and debt advisory), White & Case (legal), EY (financial), Deloitte (tax), Arendt & Medernach (structure/legal) and Pöllath + Partners (structure/legal).
About Waterlogic
Waterlogic is an innovative designer, manufacturer, distributor and operator of mains attached point-of-use (“POU”) drinking water purification and dispensing systems designed for environments such as offices, factories, hospitals, hotels, schools, restaurants and other workplaces. Founded in 1992, Waterlogic was one of the first companies to introduce POU systems to Europe and has been in the forefront of the POU market in terms of product design and quality, the application of new technologies and in sales and service. Waterlogic has an extensive and expanding independent global distribution network in place, reaching over 50 countries around the world.
Waterlogic products are currently being distributed in North and South America, Europe, Asia, Australia and South Africa. Waterlogic’s leading markets are the USA, Australia and Western Europe, in particular Scandinavia, Germany and France.
More information can be found at www.waterlogic.com
About Castik
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.
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.
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 final fund close of EUR 1bn in July 2015.