January 21, 2016
M&A, Debt advisory
GCA Altium advised Castik Capital and Waterlogic on the acquisition of the PHS Waterlogic business of PHS Group
GCA Altium has acted as M&A and debt adviser to Castik Capital and Waterlogic on the acquisition of PHS Waterlogic, the water cooler division of PHS Group, by Castik portfolio companies Waterlogic and Angel Springs.
PHS Waterlogic exclusively distributes Waterlogic-manufactured and branded point-of-use water coolers in the UK, Ireland and the Netherlands. PHS Waterlogic adds a total of c. 90,000 point-of-use water coolers on rental and service contracts to Waterlogic’s existing operations.
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 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 preferred supplier for workplace drinking water,” said Jeremy Ben-David, Founder and Group CEO of Waterlogic.
Phil Adams, GCA Altium’s Group CEO, said: “We are excited to have partnered again with Castik and management across our M&A and debt teams on growing this platform and broadening the geographic reach and product range of the business. This was a complex corporate carve out in three geographies which was funded by additional equity and a substantial, underwritten, debt package.”
The acquisition of PHS Waterlogic is the sixth manifestation of the buy-and-build strategy which Castik Capital believes, coupled with tenacious organic growth in an industry characterised by attractive growth and recurring revenues, can create significant value.
Terms of the transaction were not disclosed.