Waterlogic Plc Acquisition of DSK
Waterlogic Plc (AIM: WTL.L), a leading manufacturer and global distributor of point-of-use ("POU") drinking water purification and dispensing systems, is pleased to announce that it has agreed to acquire from Hart AS, Ludwig Hart and the Estate of Johs Lunde Group the entire issued share capital of Det Stavangerske Kaffeselskap ("DSK"), a leading vendor of water dispensers and coffee machines based in Norway, for a total cash consideration of USD 1.46 million, subject to, inter alia, approval of the Norwegian Competition Authority.
DSK has an existing contracted customer base of water dispenser and coffee machine users located near Waterlogic's Stavanger offices. Following completion, DSK will be merged into Waterlogic Norway during 2012, with the aim of driving turnover and profit growth from cross-selling opportunities and achieving synergies and cost savings in the combined entity.
The audited financial statements of DSK for the full year ending 31 December 2010 show revenues of USD 3.84 million and EBITDA of USD 0.50 million (after adding back non recurring payments made to shareholders).
Jeremy Ben-David, Waterlogic, Group CEO, commented:
"We are very excited to announce the acquisition of DSK, our first since our IPO, which represents excellent value.
DSK is a profitable and highly complementary business, allowing the introduction of Waterlogic's point-of-use water purification technology and associated products into the DSK customer base. The DSK coffee machine business will also be expanded into the existing Waterlogic customer base and branch offices throughout Norway and Denmark.
We are making good progress with our attractive pipeline of future acquisition opportunities and we look forward to updating shareholders in due course."
Erik Gulbrandsen, MD of Waterlogic Norway and Denmark, commented:
"The acquisition of DSK is an obvious opportunity to further strengthen Waterlogic's leading position in Norway and Denmark. This will help to ensure our combined client base has full access to products from both DSK and Waterlogic, in addition to the expected costs savings and other synergies from the combined group.
We have known the DSK team for a long time and look forward to working more closely with them going forward."