Waterlogic to acquire Cool Clear Water Group
Water cooler and filtration system manufacturer Waterlogic has made a conditional agreement to acquire the entire share capital of Australian company Cool Clear Water Group(CCW).
Water cooler and filtration system manufacturer Waterlogic has made a conditional agreement to acquire the entire share capital of Australian company Cool Clear Water Group(CCW).
The Irish-based firm's acquisition of the point-of-use (POU) drinking water purification and dispensing systems business marks its entry into the Australian market.
Waterlogic will buy CCW for 60m Australian dollars in cash on completion.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
CCW has more than 26,000 POU coolers installed, which Waterlogic said will boost its business-to-business division.
"With over 11,000 customers, ranging from blue-chip organisations to small and medium enterprises, CCW is the only Australian POU provider with a presence in all states," Waterlogic said.
"CCW is predominantly a rental business which will further enhance the Group's proportion of recurring revenues and EBITDA [earnings before interest, tax, depreciation and amortisation] margin."
CCW's revenues for the year ended June 30th 2012 came to 16.9m Australian dollars while EBITDA came to 9.3m Australian dollars.
The acquisition will be financed through existing cash resources and new debt facilities.
It is conditional on, inter alia, the company securing debt financing. Waterlogic is currently in advanced negotiations with several banks.
Shares rose 0.52% to 193.50p at 11:10 Friday.
RD
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Pressure grows on Labour to remove the two-child benefit cap - here’s everything you need to know
The cap, which was introduced by the previous Conservative government, has been criticised for worsening child poverty
By Chris Newlands Published
-
Regulator moves to protect access to cash amid branch closures and disappearing ATMs
News The Financial Conduct Authority has told banks to start assessing if local communities have adequate cash access from mid-September
By Marc Shoffman Published