LONDON, UK: Schroder British Opportunities Trust (SBO) has confirmed that Culligan International – the innovative brand in consumer-focused, sustainable water solutions and services – and Waterlogic Group Holdings – a global designer, manufacturer, distributor and service provider of purified drinking water dispensers – have announced the completion of their merger.
Together they will create a world leader in sustainable drinking water solutions.
The combined business will operate under the Culligan name and will have over 11,000 employees operating across 30 countries generating annual revenues of c. $2.4 billion. The company is well-positioned to expand further in the growing $35 billion consumer water market.
The company is facilitating a reduction in the use of single use plastics which delivers against the United Nations Sustainable Development Goals, one of the key investment criteria for SBO. Existing investors in Waterlogic will continue to hold a meaningful 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, a single asset fund managed by Castik Capital, has increased by 44% since inception and it is currently a top-3 holding by size.
As result of the merger agreement, SBO will receive £2.38 million in cash, which represents 3.2% of Company NAV as at Q2 2022.
The NAV of the Waterlogic investment in Schroder British Opportunities Trust already reflects the transaction terms less a small discount for uncertainty. It is our 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.
Schroder British Opportunities Trust 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.”