JZ Capital Partners sale of Paragon adds 0.4% to NAV- JZ Capital Partners (JZCP) announce the sale of Paragon Water Systems, Inc. to Culligan Water representing an increase in NAV of approximately 0.4% , as of 31 January 2018.
The transaction follows the recent announcement (as we previously reported) that JZCP is to sell Bolder Healthcare Solutions (“BHS”) to a subsidiary of Cognizant for gross proceeds of approximately $108.0 million, representing an increase in NAV of approximately 4.3%, as of 31 January 2018.
JZCP expects to realise approximately $16.2 million in gross proceeds (including escrows) from the sale, representing an increase of approximately $3.7 million, or 29.6% on the carrying value of Paragon of approximately $12.5 million as of 31 January 2018. In addition, this transaction represents a gross multiple of invested capital (“MOIC”) of approximately 1.8x and a gross internal rate of return (“IRR”) of approximately 18.4%.
Paragon Water Systems
Paragon is a US based company from Florida, that develops and produces water filtration products for makers and distributors of domestic, retail and commercial plumbing products.
Culligan Water
Culligan is is also an American water treatment products company from Illinois. The company specialises in water softeners, water filtration systems and bottled water for residential and office applications.
JZ Capital Partners
JZ Capital Partners is a listed private equity-driven fund which invests primarily in high quality US and European micro cap companies. Its investment objective is to provide a superior overall return comprised of a current yield and significant capital appreciation by typically investing up to US$35 million in companies with an enterprise value of up to US$200 million.
JZCP : JZ Capital Partners sale of Paragon adds 0.4% to NAV