Target Information

Waterlogic is a prominent global provider specializing in purified drinking water dispensers, targeting a diverse range of environments including offices, hospitals, restaurants, and public spaces. Established in 1992, Waterlogic is renowned for its innovative designs and commitment to sustainability, being one of the pioneers in the bottle-less dispenser market. The company boasts a vertically integrated operations model, with in-house research and development, as well as manufacturing facilities in the USA, Australia, and China. Waterlogic currently services clients in 18 countries directly and reaches an additional 50 countries through its extensive distribution network.

Since its initial investment by Castik Capital’s EPIC I Fund in January 2015, Waterlogic has experienced significant growth, increasing its revenue to approximately $400 million and achieving an EBITDA of over $150 million. This growth trajectory is supported by a robust pipeline of acquisition opportunities and organic initiatives such as new product launches and market expansion.

Industry Overview

The global demand for purified drinking water solutions has surged, driven by heightened awareness surrounding health and sustainability. This trend is particularly pronounced in B2B segments, where companies are increasingly seeking environmentally friendly hydration solutions. The market is still relatively underpenetrated, which presents extensive growth opportunities for companies like Waterlogic.

In addition, workplace wellness initiatives have gained traction, with organizations recognizing the importance of providing healthy drinking options to enhance employee productivity and satisfaction. As the global workforce continues to evolve, the demand for reliable access to quality water is expected to increase.

The industry landscape is characterized by significant competition; however, Waterlogic differentiates itself through its comprehensive service offerings including installation, maintenance, and customer support, positioning itself as a leader in customer solutions. The trend towards bottle-less water solutions aligns with growing sustainability concerns, making Waterlogic's product offering more relevant than ever.

Furthermore, governmental regulations promoting the reduction of plastic waste are expected to favor companies that provide sustainable alternatives to traditional water delivery methods. The opportunity for strategic acquisitions within this context enhances Waterlogic's growth prospects.

Rationale Behind the Deal

The acquisition of a controlling stake in Waterlogic through the new EPIC I-b Fund underscores Castik Capital's confidence in the company’s long-term growth trajectory. By securing additional capital and extending its investment horizon, the Fund enables Waterlogic to accelerate its buy-and-build strategy, which has previously proven effective in scaling operations and enhancing market presence.

As Waterlogic prepares for further international expansion and continuous innovation, the financial backing from existing and new investors is crucial for fulfilling its aggressive growth ambitions, thereby solidifying its position as a leader in the market.

Investor Information

Castik Capital is a respected European private equity investment firm with a strong track record of partnering with companies to foster innovative growth strategies. Since initiating its connection with Waterlogic in 2015, Castik Capital has established a solid foundation of collaborative success, aligning their investment strategies with Waterlogic’s operational goals.

Michael Phillips, Managing Partner at Castik Capital, emphasizes their commitment to supporting Waterlogic’s future endeavors. With a seasoned team and extensive network of institutional investors, Castik is well-equipped to leverage its expertise and resources for continued partnership with Waterlogic.

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This investment by Castik Capital is strategically sound, considering Waterlogic’s impressive growth trajectory and the favorable market conditions surrounding purified water solutions. The company's adaptability, coupled with its established market presence, positions it well for sustained success in the evolving hydration segment.

Moreover, the company’s proactive approach to sustainability and innovation aligns perfectly with contemporary consumer preferences, ensuring a competitive edge. The extensive growth potential via acquisitions and organic expansion strategies further substantiates the viability of this investment.

In the light of the current trends towards sustainability and workplace wellness, Castik Capital’s investment looks promising. The additional resources and long-term commitment provided through the new Fund will empower Waterlogic to pursue emerging opportunities and enhance its service offerings globally.

Overall, the acquisition of Waterlogic represents a prudent investment decision for Castik Capital, as the synergies created will likely drive growth and value creation, benefiting both the firm and Waterlogic in the long run.

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