Schroder British Opportunities (SBO) has announced that one of its private equity investments, Waterlogic Group Holdings, has agreed to combine with Culligan International to create a leader in sustainable drinking water solutions and services. The transaction is expected to close in the second half of 2022, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions. Existing investors in Waterlogic will continue to hold a meaningful minority ownership position in Culligan going forward.
Who are Waterlogic and Culligan?
Waterlogic has pioneered the application of advanced technology in the design of its water dispensers for offices, healthcare, education, hospitality and public settings to deliver sustainable and safe water. SBO gained exposure to Waterlogic through its investment in May 2021 into the EPIC I-b Fund SLP, a single asset fund managed by Castik Capital, which acquired a majority stake in Waterlogic.
SBO describes Culligan as a leading global consumer water solutions and services provider whose mission is to deliver clean, safe and soft water to improve consumers’ health and wellness and reduce single use plastics.
The merger
SBO says that the combined company will shape the future of clean and sustainable drinking water, providing water solutions and services for customers at home, at work, at leisure and on-the-go. The transaction brings additional scale and expertise to drive innovation in the development of new water filtration, purification and treatment solutions, expanding those to both existing and new markets, and additional distribution channels. In addition, by addressing the fundamental need for the provision of clean, safe, soft and sustainably sourced water and the reduction of single use plastics, the combined company and its customers will help deliver against the United Nations Sustainable Development Goals and meet their respective leading Environmental, Social and Governance (“ESG”) commitments.
Comments from Tim Creed, portfolio manager of Schroder British Opportunities
“We are delighted to see the announcement of this combination which will create a global leader in sustainable drinking water solutions and services while allowing SBO to remain a shareholder. The combined business has very strong sustainability credentials and considerable future growth potential through continued M&A and new product innovation.”