Business overview

Waterlogic is a leading global workplace hydration solutions company that primarily rents out mains-fed point-of-use (“POU”) water systems. Waterlogic designs, manufactures, distributes and services the water coolers. Waterlogic’s products are designed primarily for commercial clients such as offices, factories, hospitals, hotels, schools, restaurants and other workplaces. Manufacturing and R&D is 100% owned, with patents on key products and technologies such as the Firewall purification technology. Founded in 1992, Waterlogic was one of the first companies to introduce POU systems to Europe and has been a leader in the POU market in terms of product design and quality, the application of new technologies and in sales and service. Today, it has an established international presence, with approx. 1,000,000 units installed across 50 countries.

The product range comprises POU coolers for offices that are able to provide ambient, cold, hot and sparkling water that is purified, available as table-top or free-standing units. Coolers are typically placed with B2B customers on rental and service contracts, or sold to distributors in markets where Waterlogic does not have a direct presence. The Waterlogic Group’s offering in selected markets additionally includes boilers, taps / under-the-sink-solutions and bottled water coolers, thus offering a complete suite of workplace hydration solutions.

Secular trends in the market

POU solutions are benefitting from an increasing appreciation of fresh and pure drinking water coupled with convenience, ecological concerns and tangible economic advantages compared to other solutions.

  • Health: trend towards higher water consumption driven by increasing health consciousness and appreciation of pure water from employees, employers and regulatory bodies
  • Convenience: direct attachment to the water mains guarantees permanent supply, without refills, carrying and storage of bottles required. Furthermore, water is dispensed according to the individual customers’ choice (ambient, cold, hot, sparkling)
  • Ecological concerns: as POU solutions are directly connected to the water mains, they do not require any form of plastic bottles or plastic gallons and consequently reduce waste
  • Economic advantages: POU solutions are significantly cheaper than other solutions already for moderate amounts of daily water consumption as water is taken directly from the tap and purified through the POU machine rather than more expensive bottled water solutions

These trends are expected to lead to an increased adoption of POU coolers as well as a gradual shift from bottled water coolers and bottled water towards POU solutions.

Investment highlights

Waterlogic drew Castik’s interest as it fulfils the characteristics Castik is looking for extremely well. Main attractions of Waterlogic are:

  • Strong underlying organic market growth
  • Stable recurring revenue base with low dependency on individual customers
  • Recession-resilient business as a result of the rental & service model
  • Highly fragmented market poised for consolidation – 15 acquisitions made since Castik entry
  • Strong cash conversion

Value Creation Strategy

Castik is pursuing an international buy-and-build strategy to accelerate Waterlogic’s growth and works closely with Waterlogic’s management team to capture the identified value creation potential:

  • Buy-and build: Waterlogic is ideally positioned to build out its market position to become a truly global leader in a highly fragmented market globally with high potential for consolidation, supported by Castik’s deep expertise in M&A and integration of add-on acquisitions
    • Angel Springs/PHS Waterlogic: Angel, together with PHS Waterlogic (acquired January 2016), forms the largest Waterlogic country subsidiary and is the market leading UK POU and BWC (“bottled water coolers”) business offering a full suite of products to the UK office market with more than 150,000 units installed
    • Onesource Water: the acquisition of Onesource Water in October 2016 enabled Waterlogic to expand on its strong regional presence to form a market-leading and national US player. The US POU market exhibits strong organic growth, and is highly fragmented with a multitude of local players, making the US a key market for organic and acquisitive growth for Waterlogic going forward
    • Additional add-ons to date include: Unlimited Water (Australia), Just Water International (Australia), Greenworks (UK), Clear Water Group (Norway), Aguapura Aguaviva (Spain), AquaInteriör (Sweden), Aqua Line (Denmark)
  • Operational excellence: Automation and professionalization of processes through the introduction of technology-enabled solutions in order to increase efficiency & enhance KPI-based decision making
  • Management: Strengthening Waterlogic’s management team both on a group and country level by bringing in further seasoned professionals to the management team with complementary skills and experiences

Castik completed the acquisition of Waterlogic jointly with Waterlogic’s founder Jeremy Ben-David by taking the company private from the AIM market of the London Stock Exchange on January 8, 2015. Since then, Waterlogic – in close collaboration with Castik – has completed fifteen add-on acquisitions in the UK, Australia, Spain, Nordics and the USA.

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United Kingdom

Direct presence:

Australia, Austria, Denmark, France, Germany, Ireland, Netherlands, Norway, Spain, Sweden, United Kingdom, USA

Revenue 2017 (PF):

> $272m


c. 1,800

Acquisition date:

January 2015

Management Board:

Jeremy Ben-David (Group CEO),
Mark Taylor (CCO),
Huw Jenkins (Group CFO),
Simon Bolton (CEO International),
John Dundon (CEO UK)