Castik transfers Waterlogic to €700m single-asset fund

Alessia Argentieri
21 May 2021

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Castik Capital has transferred its portfolio companyТ Waterlogic to a newly raised single-asset fund, which collectedТ тЌ700m to further support the growth of the company.

The new vehicle, named Epic I-b, closed on its hard-cap following strong demand from existing investors, as well as new LPs, according to Castik.

The fund will acquire a majority stake in Waterlogic from Castik's €1bn first fund, Epic I, which had bought the business in a take-private in 2014.

This transaction follows the sale of a significant minority stake in the company to four institutional investors – British Columbia Investment Management, Neuberger Berman, StepStone, and Skandia – that closed in April 2020.

Epic I-b intends to provide Waterlogic with an extended investment horizon, additional capital to execute its buy-and-build strategy, and the resources to support its global growth and expansion plan. At the same time, the vehicle will provide Castik and its investment partners with the opportunity to continue to participate in the future growth and value creation of Waterlogic.

Castik was advised by Monument Group as placement agent, with Skadden Arps Slate Meagher & Flom, Poellath, Fried Frank, and Arendt & Medernach as legal advisers.

Castik is a private equity house specialised in acquiring significant ownership positions in European private and public companies. The firm is currently investing its second Luxembourg-based fund, Epic II, which held a final close on €1.25bn in October 2020.

Previous funding
Waterlogic listed on the AIM stock exchange in 2011 in a £110m floatation.

Castik de-listed the company in 2014 for a purchase price of £122.6m and an entry multiple of 9.9x. Since then, the company boosted its organic growth with new market entries and the launch of new products, while pursuing an intensive buy-and-build strategy with 80 add-on acquisitions.

British Columbia, Neuberger Berman, StepStone and Skandia invested in the company with the acquisition of a minority stake in 2020.

Company
Established in 1992 and based in Maidenhead, Waterlogic is a manufacturer of purified drinking water dispensers.

The company has in-house R&D units and manufacturing sites located in the US, Australia and China. It generates annual revenues of $400m and EBITDA in excess of $150m.

People
Waterlogic – Jeremy Ben David (founder, CEO).
Castik Capital – Michael Phillips (managing partner).