Information on the Target

Water Is Life Group (WILG) is a European company headquartered in Pelt, specializing in the production, distribution, and sale of pump and irrigation systems, as well as pipeline infrastructure products. Over the past few years, WILG has experienced significant growth, which is attributed to the acquisition of several industry peers. To further support its growth, Vectis Private Equity and D2E have decided to invest in the company, while the management team retains its position and reinvests in the organization.

The origins of WILG date back to 1988, when Reinier Teunissen established Watertechniek Teunissen in Achel, focusing on wholesale water pumps and accessories. Over the years, the business expanded to include two locations and various new activities. Key acquisitions included the distribution operations of MPI and Aubia, and WILG has become a prominent European importer of the Asian brand Leo Pumps. After acquiring Well Pumps last year, WILG began designing and manufacturing its own submersible and well pumps. The company significantly accelerated its internationalization in 2022 with the acquisitions of Orlando, an international distributor in Italy, and Motix, a pipeline systems specialist in the Netherlands. Today, the group encompasses ten operational companies and is projected to achieve nearly €50 million in revenue this year.

Industry Overview in the Target’s Specific Country

The water management industry in Europe is increasingly recognized for its critical role in responding to climate change, particularly with the rise in frequency of droughts alongside intense rainfall. The demand for innovative water management solutions and advanced irrigation systems is expected to grow, driven by the ongoing professionalization of agriculture and horticulture. In recent years, investment in sustainable water management technologies has surged as stakeholders acknowledge their importance in ensuring water security.

Moreover, the geothermal market, which WILG is expanding into, is still in its early stages but holds potential for significant growth in the years ahead. Leveraging geothermal energy not only represents an efficient method of heating homes and buildings but also offers a sustainable alternative to traditional heating technologies. As awareness of these efficiencies increases, so too will market demand.

In Belgium, the government has been supportive of initiatives aimed at improving water management and infrastructure through investments and policy reforms. This positive regulatory environment, combined with growing consumer awareness, positions innovative companies like WILG favorably for future growth. Additionally, demographic trends toward urbanization increase the need for reliable water supply systems, further emphasizing the sector's relevance.

The Rationale Behind the Deal

The decision by Vectis Private Equity and D2E to invest in Water Is Life Group stems from the company’s established market presence and substantial growth potential. With a clear trajectory of expansion and diversification into new product lines and markets, WILG offers a promising investment opportunity in a sector that is becoming increasingly vital for both ecological and economic reasons.

The collaboration is also expected to equip WILG with the necessary financial and strategic support to accelerate its growth plans, including potential future acquisitions and scaling operations internationally. By partnering with seasoned investors, WILG is set to strengthen its competitive position within the industry.

Information About the Investor

Vectis Private Equity is a reputable investment firm known for supporting mid-market companies with the ambition to expand and innovate. The firm focuses on companies that demonstrate solid growth potential and seeks to create value by providing both financial backing and strategic guidance.

D2E is a similarly strategic investor, with a keen interest in companies that are well-positioned to capitalize on market opportunities. Together, both investors are committed to partnering closely with WILG's management team to nurture its growth journey and help achieve its ambitious objectives.

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The investment in Water Is Life Group by Vectis and D2E represents a strategic move that could yield favorable outcomes for all parties involved. WILG's established presence in a critical industry, coupled with the increasing demand for advanced water management solutions, makes this deal particularly promising. The company's proactive expansion into complementary markets, such as geothermal technology, further strengthens its growth outlook.

Investor confidence in WILG is evident, as both firms have expressed enthusiasm for the company’s vision and operational strategy. The combined expertise and resources of Vectis and D2E can prove invaluable in navigating the company's future growth, which speaks to their positive outlook on this investment.

Furthermore, the management team's reinvestment and commitment to the company underscores a shared vision for the future. This alignment increases the likelihood of successful outcomes, making WILG an intriguing investment opportunity.

Overall, while potential risks always exist in any investment scenario, the alignment of WILG’s objectives with the growing demands of the water management sector positions this deal as a potentially strong investment for Vectis and D2E.

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