Waterlogic Plc Acquires Cool Clear Water Group
Acquisition marks Waterlogic's entry into the Australian water cooler market
Waterlogic Plc announced that it has entered into a conditional agreement to acquire the entire share capital of Cool Clear Water Group Ltd. (CCW). The acquisition marks Waterlogic's entry into the Australian water cooler market.
CCW is a leader in the Australian point-of-use (POU) market with more than 26,000 POU coolers installed, and as such, the acquisition will bolster the group's business-to-business division. With more than 11,000 customers, ranging from blue-chip organizations to SMEs, CCW is the only Australian POU provider with a presence in all states. It is predominantly a rental business, which will further enhance the group's proportion of recurring revenues and EBITDA margin.
The acquisition will be financed through existing cash resources and new debt facilities. The acquisition agreement is conditional on, inter alia, the company securing debt financing, and Waterlogic is currently in advanced negotiations with several banks in this regard.
The company will make a further announcement to the market on completion, which is expected to occur in June 2013.