Acquisition of Aqua Service AS (7122X)
February 20 2012 - 5:00AM
UK Regulatory
TIDMWTL
RNS Number : 7122X
Waterlogic PLC
20 February 2012
20 February 2012
Waterlogic Plc
("Waterlogic" or the "Company")
Acquisition of Aqua Service AS
Waterlogic Plc (AIM: WTL.L), a leading manufacturer and global
distributor of point-of-use ("POU") drinking water purification and
dispensing systems, is pleased to announce that it has
conditionally agreed to acquire the share capital of Aqua Service
AS ("Aqua Service"), a leading vendor of water dispensers and
coffee machines based in Sweden and Norway for a cash consideration
of NOK 37 million (approximately USD 6.35 million), subject to
working capital adjustments. The vendors of Aqua Service are Botts
and Company Ltd., which has a majority shareholding, and several
other smaller shareholders.
Completion is conditional on approval of the Norwegian
Competition Authority and is expected to take place during March
2012.
Aqua Service has 10,885 machines installed in the field in
Norway and Sweden, with POU water dispensers, its fastest growing
segment, currently representing 16% of its installed base. The
Board of Waterlogic believes that the growth in conversion from
bottled water dispensers to POU water dispensers represents an
excellent opportunity for the Company as customers look for more
convenient, cost effective and environmental solutions. Waterlogic
expects to accelerate this process of converting customers to
POU.
Unaudited revenues, adjusted EBITDA and net loss (the latter two
adjusted to add back non-recurring payments made to Board members)
for Aqua Service for the year ending 31 December 2011 were NOK
60.97 million (approximately USD 10.46 million), NOK 7.17 million
(approximately USD 1.23 million) and NOK - 3.20 million
(approximately USD - 0.55 million) respectively.
Jeremy Ben-David, Waterlogic, Group CEO, commented:
"We are pleased to announce Waterlogic's third acquisition of
2012.
Aqua Service is an established business with an excellent
customer base and a growing POU water dispenser segment. Waterlogic
expects to accelerate this growth through the introduction of
Waterlogic's point-of-use water purification technology and
associated products into Aqua Service's customer base. This will
help to replace bottled water in these markets and make sure that
Waterlogic provides the existing customers of Aqua Service with the
best possible water solutions in the future. Additionally, the
expected cost savings and other synergies from the combined group
represent an excellent opportunity to further grow our presence in
the Scandinavian markets.
We look forward to working more closely with the Aqua Service
team going forward."
Enquiries:
Waterlogic Plc Tel: +44 (0)20 7074 1800
Jeremy Ben-David, Group Chief Executive Email: waterlogic@kreabgavinanderson.com
Officer
Steve Harrison, Group Chief Financial
Officer
Liberum Capital (Nominated Adviser Tel: +44 (0)20 3100 2000
and Broker)
Steve Pearce
Richard Bootle
Kreab Gavin Anderson (PR Adviser) Tel: +44 (0)20 7074 1800
James Benjamin Email: waterlogic@kreabgavinanderson.com
Madeleine Palmstierna
Website: www.waterlogic.com
Notes to editors:
Waterlogic Plc
Waterlogic Plc (AIM: WTL.L) is a leading manufacturer and global
distributor of mains attached point-of-use ("POU") drinking water
purification and dispensing systems designed for environments such
as offices, factories, hospitals, hotels, schools, restaurants and
other workplaces. Waterlogic is a Jersey registered company.
Waterlogic was one of the first companies to introduce POU
systems to Europe and has been a leader in the POU market in terms
of product design and quality, the application of new technologies
and in sales and service. Waterlogic has an extensive and expanding
independent global distribution network in place, reaching 50
countries across five continents.
Waterlogic products are currently being sold in North and South
America, Europe, Asia, Australia and South Africa. Waterlogic's
leading markets are the US and Western Europe in particular,
Germany, France, Norway, Sweden and the UK. Of the 1.5 million new
installations in the business-to-business market between 2005 and
2010, approximately 73% incorporated POU technology of which
Waterlogic had a 26% market share.
The Directors believe that the movement away from bottled water
coolers (BWC) to POU water dispensers is set to continue its
current trend as a result of cost, convenience, health benefits and
environmental considerations.
Waterlogic's Firewall(TM) ultra-violet (UV) technology is one of
the most effective water purification technologies for POU water
dispenser applications currently on the market and is the only
technology certified as being able to guarantee 99.9999% pure water
100% of the time, a fact which has been confirmed by over 5,000
physical tests in independent laboratories. The innovative
Firewall(TM) technology incorporates a highly-specialised, compact
UV system in the faucet/tap, which ensures that water passes
through the UV system immediately before it is dispensed into a
cup. This point of differentiation for Firewall(TM) is unique in
the POU market.
For the financial year ended 31 December 2010, the Group
generated revenues and adjusted EBITDA of USD 68.3 million and USD
11.4 million, respectively, and had approximately 500,000 machines
installed as at 31 December 2010.
As part of Waterlogic's ongoing commitment to providing safe
water, the Group has pledged to donate USD 225,000 over the next
three years to WaterAid. WaterAid is a renowned international
non-profit organisation that transforms lives by improving access
to safe water, hygiene and sanitation in the world's poorest
countries. Since 1981 WaterAid has reached 15.9 million people
globally with safe water. Website: www.wateraidamerica.org/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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