Culligan International, the innovative brand in consumer-focused sustainable water solutions and services, and Waterlogic, a global designer, manufacturer, distributor and service provider of purified drinking water dispensers, have signed a definitive agreement to combine and create a leader in clean and sustainable drinking water solutions and services.
Culligan is a leading global consumer water solutions and services provider whose mission is to deliver clean, safe and soft water to improve consumers’ health and wellness and reduce single-use plastics. Waterlogic has pioneered the application of advanced technology in the design of its water dispensers for offices, healthcare, education, hospitality, and public settings to deliver sustainable and safe water.
Together, the combined company will shape the future of clean and sustainable drinking water globally, providing water solutions and services for customers at home, at work, at leisure and on-the-go. The transaction brings additional scale and expertise to drive innovation in the development of new water filtration, purification and treatment solutions, expanding those to both existing and new markets, and additional distribution channels. In addition, by addressing the fundamental need for the provision of clean, safe, soft, and sustainably sourced water and the reduction of single-use plastics, the combined company and its customers will help deliver against the United Nations Sustainable Development Goals (“SDGs”) and meet their respective leading Environmental, Social and Governance (“ESG”) commitments.
Scott Clawson, Chief Executive Officer of Culligan International, said: “For more than eight decades, Culligan has served as a leading provider of water treatment solutions and services for consumers. Our focus has been on driving innovation, delivering the best consumer experience and providing solutions that are both good for people and the planet, while also moving the market forward. This announcement represents an important step in our evolution toward those goals as we add Waterlogic’s talent, distribution partners and innovative technology to our complementary offerings around the globe. Together with the Waterlogic team, we believe we can drive the future of clean and sustainable drinking water solutions globally and serve a broader group of customers in the $250 billion global consumer water market.”
Jeremy Ben-David, Founder and Group Chief Executive Officer of Waterlogic, said: “The cultural, strategic and industrial logic of this transaction is clear and compelling. Both Waterlogic and Culligan are purpose-led businesses with ESG engrained in our operations. Innovation has been a key driving factor in the historical success of both companies and together, our far-reaching global footprint across multiple markets will empower us to have an even greater positive impact on people and the environment by bringing clean, safe, and soft water to more customers around the world. I look forward to working with Scott and the Culligan team and am excited about the future we will be able to offer to our customers, employees, partners and the communities we serve.”
Leadership and Governance
The combined company will be led by Mr. Clawson, Chief Executive Officer of Culligan. The Waterlogic leadership team will play a critical role in the combined company, with Mr. Ben-David serving as Chief Executive Officer EMEA and a member of the Executive Leadership Team, and continuing his role as Chief Executive Officer Waterlogic once the transaction is complete.
Funds managed by BDT Capital Partners, LLC (“BDT”), a merchant bank that provides closely held businesses with long-term, differentiated capital, acquired a majority interest in Culligan in July 2021. BDT and its co-investors will be the majority shareholder of the combined company. Waterlogic was acquired in January 2015 by funds managed by Castik Capital, the European private equity investor, alongside Waterlogic management. Castik Capital focuses on identifying and developing investment opportunities across Europe where long-term value can be generated through active partnerships with management teams. Castik Capital, Waterlogic’s management team and other existing Waterlogic shareholders will maintain a meaningful minority ownership position in Culligan going forward. Terms of the transaction were not disclosed.
Approvals and Closing
The transaction is expected to close in the second half of 2022, subject to the receipt of regulatory approvals and the satisfaction of other customary closing conditions. Until the transaction closes, both companies will provide regular updates and continue to operate business as usual as two independent companies.