StockMarketWire.com - Waterlogic, a leading manufacturer and global distributor of point-of-use ("POU") drinking water purification and dispensing systems, has conditionally agreed to acquire the share capital of Aqua Service, a leading vendor of water dispensers and coffee machines based in Sweden and Norway.
It will pay approximately $6.35m, subject to working capital adjustments. The vendors of Aqua Service are Botts and Company, which has a majority shareholding, and several other smaller shareholders.
Completion is conditional on approval of the Norwegian Competition Authority and is expected to take place during next month.
Aqua Service has 10,885 machines installed in the field in Norway and Sweden, with POU water dispensers, its fastest growing segment, currently representing 16% of its installed base.
Waterlogic believes that the growth in conversion from bottled water dispensers to POU water dispensers represents an excellent opportunity for the company as customers look for more convenient, cost effective and environmental solutions. Waterlogic expects to accelerate this process of converting customers to POU.
Unaudited revenues for Aqua Service for the year ending 31 December 2011 were around $10.46m. After an adjustment to add back non-recurring payments made to Board members, the net loss was $0.55m.
Jeremy Ben-David, Waterlogic, Group CEO, commented: "We are pleased to announce Waterlogic's third acquisition of 2012.
"Aqua Service is an established business with an excellent customer base and a growing POU water dispenser segment. Waterlogic expects to accelerate this growth through the introduction of Waterlogic's point-of-use water purification technology and associated products into Aqua Service's customer base.
"This will help to replace bottled water in these markets and make sure that Waterlogic provides the existing customers of Aqua Service with the best possible water solutions in the future. Additionally, the expected cost savings and other synergies from the combined group represent an excellent opportunity to further grow our presence in the Scandinavian markets."
At 10:25am: (LON:WTL) World Travel Holdings share price was +4p at 158p
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