LDC reaps 4x returns in Aqualisa GBP 130m trade exit
Mid-market sponsor LDC has sold Aqualisa to US-listed Fortune Brands Home & Security in a transaction that values the UK-based manufacturer of shower products at GBP 130m.
The sale represents a near-threefold increase to LDC’s original investment in 2015 and a roughly 8x post-synergy EBITDA, with profits more than doubling since 2019. It generates a money multiple return of 4x, according to a press release.
LDC supported the management buyout of Aqualisa from Sankaty Advisors and RBS, with HSBC providing banking facilities for the transaction, according to Unquote Data.
Fortune Brands, which has a portfolio of over 30 global brands and sales of USD 7.7bn, aims to continue scaling Aqualisa’s international presence, according to the deal announcement. As part of Fortune Brands Water Innovations business, Aqualisa will enable the buyer to continue to leverage accelerants in water management, connected products and global sustainability. The two companies’ complementary route-to-market capabilities and digital water platforms are set to expand sales in the US, the UK and Europe and enter new markets over time.
Under LDC’s management, Aqualisa invested in its own ESG programme, which included analysing energy consumption monthly and running employee awareness campaigns to help reduce consumption. As a result, Aqualisa now diverts 100% of waste from landfill and has been classified as carbon neutral, according to a press release from the vendor.
LDC invested more than GBP 1.2bn in the British manufacturing sector. Most recently, the private equity firm exited pump manufacturer Stuart Turner following revenue growth of more than 66%, and invested in manufacturer and distributor Bramble Foods and electronic security manufacturer Texecom.
Company
Founded in 1977 and headquartered in Westerham, Aqualisa Holdings is a UK-based designer, developer and producer of smart and digital shower products. The company is known for new product development, particularly in the smart bathroom category. It produces and distributes shower products primarily under the Aqualisa brand. The company has approximately 260 associates.
People
Aqualisa − Mat Norris (CEO).
LDC − Rob Powell (partner).
Fortune Brands − Nicholas Fink (CEO).
Advisers
Vendor and Aqualisa – Rothschild: Stephen Griffiths, Samantha Gough; Gowling: Chris Letters, Jeremy Millington.
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