Merger of Waterlogic with Culligan International

RNS Number : 1257F

Schroder British Opportunities Tst.

03 November 2022

 

Schroder British Opportunities Trust plc

Merger of Waterlogic with Culligan International

Schroder British Opportunities Trust plc ("SBO" or the "Company") is pleased to confirm 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[1].  As result of the merger agreement, SBO will receive £2.38 million[2] in cash, which represents 3.2% of Company NAV as at Q2 2022. The NAV of the Waterlogic investment in SBO 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.  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."

Enquiries:

Schroder Investment Management Limited   Paula Lockwood (Company Secretarial)   Augustine Chipungu (PR)	020 7658 6000
Peel Hunt   Liz Yong, Luke Simpson, Tom Pocock (Investment Banking)   Alex Howe, Chris Bunstead, Ed Welsby, Richard Harris (Sales)	020 7418 8900

About Schroder British Opportunities Trust plc 'SBO'

SBO invests in a diversified portfolio of UK-focussed public and private equity companies that have strong long-term growth prospects and good ESG credentials.

Further information on the Company is available at  www.schroders.com/sbo  

About Culligan International

Founded in 1936 and headquartered in Rosemont, Illinois, Culligan International makes a real difference to people's lives by providing clean, safe, great-tasting water to more than 100 million consumers globally. With over 11,000 employees in 30 countries, Culligan generates combined annual revenues of about $2.4 billion and is well-positioned to expand in the $35 billion global consumer water market. Culligan is one of the world's most-recognized and trusted names in water, a reputation built through an 85-year legacy of trust, innovation, service and quality. The Culligan master brand covers a family of iconic brands and innovative technologies that include Quench, Blupura, Zip Water, Purezza Premium Water and Firewall® UVC purification. The combination with Waterlogic diversifies their product range and increases their global reach, including through an expansive dealer network in over 70 countries. It helps bring a breadth of household, commercial and retail solutions to new markets and distribution channels across the Americas, Europe, the Middle East, Africa and Asia Pacific. For more information visit: www.corporate.culligan.com

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[1] Based on fair market value

[2] €2.77 million converted to GBP 0.86 as at 2 November 2022

 

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