Sustainable water solutions firms complete merger
A merger has been announced by Schroder British Opportunities Trust, between Wolverhampton water dispenser firm Waterlogic and Culligan International – in a move to create a world leader in sustainable drinking water solutions.
The combined business will operate under the Culligan name and will have more than 11,000 employees operating across 30 countries generating annual revenues of around $2.4bn. It says it is now well-positioned to expand further in the growing $35bn consumer water market.
The company is also facilitating a reduction in the use of single-use plastics which delivers against the United Nations Sustainable Development Goals, which is a key investment criterion for Schroder British Opportunities. Existing investors in Waterlogic will continue to hold a minority ownership position in Culligan after the merger.
The value of the company’s investment in Waterlogic, made through the EPIC I-b Fund SLP, has increased by 44% since inception and it is currently a top-3 holding by size. As a result of the merger agreement, SBO will receive £2.38 million in cash, which represents 3.2% of the company’s net asset value (NAV) as of Q2 2022.
The NAV of the Waterlogic investment in SBO, reflects the transaction terms minus a small discount for uncertainty. It is SBO’s intention to reinvest this cash as we continue to see compelling opportunities and value across both private and public markets.
Tim Creed, SBO’s Portfolio Manager, commented: “We are delighted to see the completion of this merger which has generated a global leader in sustainable drinking water. SBO will remain a shareholder as the combined business has considerable potential for future growth. We are also pleased to report our first cash generation from the SBO Private Equity portfolio.”
