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.”
Jeremy Ben-David, Group Chief Executive Officer
Liberum Capital (Nominated Adviser and Broker) Tel: +44 (0)20 3100 2000
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™ 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™ 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™ 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/