Waterlogic to acquire Clear Water Group in Norway - November 11, 2015
Oslo, 11 November 2015 – Waterlogic has entered into an agreement under which Waterlogic’s Norwegian subsidiary has agreed to purchase Clear Water Group AS (“Clear Water”) for an undisclosed amount.
Clear Water is a Norwegian water cooler and coffee business which has been built organically by the original owners since founding the business in 1997, with roots tracing back to 1989.
Clear Water adds c. 1,000 POU water coolers to Waterlogic’s existing Norwegian operations, and in particular strengthens its footprint in Oslo. Additionally, 400 coffee machines are added to Waterlogic Norway’s existing coffee business. Clear Water will over time be re-branded to Waterlogic, and existing customers of Clear Water will be given the option to upgrade to a high-quality Waterlogic machine.
“The acquisition of Clear Water consolidates Waterlogic’s market leadership in the point-of-use segment in Norway, and in particular in Oslo. Additionally, Clear Water adds scale to Waterlogic Norway’s growing coffee business,” said Peter Cohen, CEO of Waterlogic Commercial. “This acquisition further demonstrates our commitment to building a leading global water cooler company through a buy-and-build strategy coupled with organic growth”.
Waterlogic was acquired in January 2015 by funds managed by Castik Capital, the European private equity investor. The acquisition of Clear Water is the fifth manifestation of the company’s buy-and-build strategy and follows the acquisitions of Clearwater Filter Systems and Unlimited Water in Australia as well as Greenworks Water in the UK in 2015, and 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 is a leading 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 a leader in 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.
Industry analysts Zenith, report that in Western Europe, mains water coolers accounted for 45% of all coolers in use in 2014 and are steadily heading towards a majority share. Whereas in the US, mains water coolers accounted for 21% of all coolers in use in 2013 and are expected to grow to 29% of the total market by 2018. Zenith conclude that “bottled water coolers have lost out to mains water point-of-use coolers due to a combination of cost, convenience and perceptions of environmental impact.”
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.