January 6, 2015
M&A, Debt advisory
Acquisition of Angel Springs by Castik Capital
GCA Altium has advised Castik Capital, the European private equity investment firm, on dual acquisitions: the £123m acquisition of AIM-quoted Waterlogic Plc, a vertically integrated global designer, manufacturer, distributor and service provider of point-of-use drinking water purification and dispensing systems, and the multimillion pound investment in Angel Springs, a leading UK water cooler company which was acquired from LDC.
Castik aims to create a leading global water cooler business by combining Waterlogic with Angel Springs, which it acquired earlier in December. For the time being, Angel Springs will continue to operate under its own brand in the UK and keep its current product offering.
GCA Altium’s team advised Castik in a competitive formal sale process of Waterlogic in addition to an auction process of Angel Springs. We combined M&A advisory work on both the Waterlogic and Angel Springs transactions with the raising of debt facilities to support both acquisitions using our newly formed UK debt advisory team. This is the fourth transaction the team has completed since joining in September 2014.
“Waterlogic and Angel Springs both enjoy strong growth momentum – together, they will be even better placed to benefit from global opportunities,” said Michael Phillips, Partner of Castik Capital. “We expect steady growth in the water cooler market, and will support selective M&A when opportunities arise. Markets are fragmented in many countries, and given Waterlogic’s vertical integration, technological edge and excellent management team, we see significant scope for value-enhancing acquisitions and strong organic growth.”
Waterlogic already has an established international presence, with 780,000 units installed across 50 countries and market leading positions in Australia, USA, Scandinavia, Germany and France. Waterlogic and Angel Springs will be integrated to benefit from marketing and revenue synergies and the sharing of best practice.
Phil Adams, GCA Altium's Group CEO, said: "We are delighted to have partnered with Castik on these first transactions in their maiden fund and look forward to helping them grow this platform and the wider portfolio over the coming years, particularly given our complementary international focus and office network. These were exciting deals for us with many dimensions – M&A advisory, public company advisory and a complex debt advisory strategy to facilitate both deals."