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.

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

Recommended

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021