JZ Capital Ptnrs Ltd Update on sale of Water Treatment Industries

 
TIDMJZCP TIDMJZCN TIDMJZCC 
 
JZ Capital Partners Ltd 
 
                      FURTHER ANNOUNCEMENT IN RELATION TO 
                  THE SALE OF TWH WATER TREATMENT INDUSTRIES 
 
        US$32 million in initial gross proceeds expected to be received 
 
    with up to US$5 million in additional gross earn-out proceeds possible, 
                    representing a 3.1x MOIC and 25% IRR 
 
07 September 2018 
 
JZ Capital Partners Limited (LSE:JZCP.L or "JZCP"), the London listed fund that 
invests in US and European microcap companies and US real estate, refers to its 
announcement made on 3 September 2018 in which it was pleased to announce the 
proposed disposal of its ownership interest in TWH Water Treatment Industries, 
Inc. ("TWH"). 
 
As previously announced and subject to closing of the transaction, JZCP expects 
to realise approximately US$32 million in initial gross proceeds from the sale 
(subject to post-closing adjustments), plus potentially up to US$5 million of 
additional gross proceeds from an earn-out based on certain revenue targets of 
TWH. Including gross proceeds from a dividend recapitalization in November 
2016, the transaction is expected to represent a gross multiple of invested 
capital ("MOIC") of approximately 3.1x, and a gross internal rate of return 
("IRR") of approximately 25%, in each case taking into account the receipt of 
full post-closing adjustments and earn-out proceeds. Additionally, the sale of 
TWH represents an uplift to JZCP's NAV at July 31, 2018 of approximately 2.7%, 
again taking into account the receipt of full post-closing adjustments and 
earn-out proceeds. 
 
David Zalaznick, JZCP's Founder and Investment Adviser, commented: "We are 
delighted to realise our investment in TWH. This further demonstrates our 
commitment to building liquidity in order to make new investments, pay down 
debt and buy back stock. We wish the TWH management team every success in the 
future." 
 
The transaction follows the announcement earlier this year on 14 March 2018 
that JZCP sold Paragon Water Systems, Inc. ("Paragon") to Culligan Water, the 
world leader in residential, office, commercial and industrial water treatment. 
JZCP realized US$16.1 million in gross proceeds and expects remaining escrows 
of approximately US$0.1 million in connection with the Paragon sale. 
 
Completion of the TWH transaction is subject to a number of conditions 
customary for US-style mergers as well as obtaining shareholder approval from 
JZCP shareholders at an extraordinary general meeting of the company to be held 
on 25 September 2018 and as announced on 4 September 2018. 
 
__________________________________________________________________ 
 
Unless otherwise defined, defined terms in this announcement shall have the 
same meaning as in the announcement of 3 September 2018. This announcement 
should also be read in conjunction with the announcements of 3 and 4 September 
2018 together with the shareholder circular being distributed to shareholders 
in connection with the TWH transaction. 
 
                                     Ends 
 
For further information: 
 
Ed Berry / Kit Dunford                 +44 (0) 20 3727 1046 / 1143 
FTI Consulting 
 
David Zalaznick                        +1 212 485 9410 
Jordan/Zalaznick Advisers, Inc. 
 
Samuel Walden                          +44 (0) 1481 745385 
Northern Trust International Fund 
Administration Services (Guernsey) 
Limited 
 
 
About JZCP 
 
JZ Capital Partners ("JZCP") is one of the oldest closed-end investment 
companies listed on the London Stock Exchange. It seeks to provide shareholders 
with a return by investing selectively in US and European microcap companies 
and US real estate. JZCP receives investment advice from Jordan/Zalaznick 
Advisers, Inc. ("JZAI") which is led by David Zalaznick and Jay Jordan. They 
have worked together for more than 35 years and are supported by teams of 
investment professionals in New York, Chicago, London and Madrid. JZAI's 
experts work with the existing management of microcap companies to help build 
better businesses, create value and deliver strong returns for investors. For 
more information please visit www.jzcp.com. 
 
 
 
END
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September 07, 2018 02:00 ET (06:00 GMT)
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