A UK-based business has swooped on Cool Clear Water Group, buying the Perth-based water purification and dispensing system distributor for $60 million.
Waterlogic Plc announced overnight it had completed the purchase and would enter the Australian water cooler market.
Cool Clear Water, which counted WA-based private equity group Banksia Capital as a major shareholder, has more than 26,000 cooler systems installed across Australia, with more than 11,000 customers.
Waterlogic group chief executive Jeremy Ben-David said the acquisition would be the most transformational transaction the company had done to date.
“Cool Clear Water’s financial performance is strong with high levels of recurring revenues, strong organic growth and good margins,” he said.
“Significantly for the group, the acquisition further diversifies the business from a geographic perspective and we believe it will be a fantastic platform for our growth in Australia.”
Cool Clear Water Group chief executive Adam Cornell said he and joint chief executive David Byrne were pleased to agree to terms with Waterlogic.
“We believe that Waterlogic, as a global player in the sector, has the strategy and structure to drive Cool Clear Water into its next stage of growth,” he said.
Banksia initially invested in Cool Clear Water in 2008 in a $7 million deal, and subsequently led six acquisitions and a merger across the country.
The business had 30 shareholders when it was sold.
Minter Ellison in Sydney acted as Clear Water Group's legal adviser, while DLA Piper was the Australian counsel to Waterlogic.
