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

Share tips of the week – 28 January
Share tips

Share tips of the week – 28 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
28 Jan 2022
Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Amazon halts plans to ban UK Visa credit card payments
Personal finance

Amazon halts plans to ban UK Visa credit card payments

Amazon has said that it is to shelve its proposed ban on UK customers making payments with Visa credit cards.
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022