Banksia Capital Sells Cool Clear Water for a Cool $60M

Perth, Australia — 31 July, 2013   Banksia Capital, a private equity firm, announces the $60 million sale of Cool Clear Water to UK-based Waterlogic.  The Cool Clear Water deal represents the successful cycle of its growth under Banksia Capital. In 2008, Banksia acquired a majority stake in the point-of-use company for $7.5 million, the first investment for the firm.

Over the past five years, Cool Clear Water grew to be the national market leader, more than tripling the number of the service and rental water coolers and hugely expanded its customer base within government and both large and SME corporations.

Since 2008, Cool Clear Water grew from $2 million to over $10 million, (earnings before interest, taxes, depreciation and amortisation.)

Banksia Capital originally bought out minority shareholders and provided expansion and acquisition funding for Cool Clear Water. The transaction was a proprietary deal which has affirmed Banksia’s Perth-based strategy to target WA’s underserviced $3 million to $15 million investment size market niche.

“Banksia built Cool Clear Water into a national market leader with recurring annuity-style rental streams.

Since Banksia’s investment, the business has completed seven acquisitions and one significant company-making merger with the Sydney-based Waterfirst business. Revenue grew over four times during Banksia’s ownership.

Banksia’s entrance and exit with Cool Clear Water shows its model works. Other investments are the franchised cafe chain Croissant Express, Pioneer Credit, the debt purchase and credit management services business, and Skillhire, the training and recruitment services busi­ness.