Culligan merges in $1.1 billion cash deal

The company that gave us the advertising slogan “Hey Culligan man!” is merging with AquaVenture Holdings Limited in a deal worth an estimated $1.1 billion.

Culligan, based in Illinois agreed to acquire the Florida-based AquaVenture Holdings for $27.10 a share in an the all-cash transition valued at $1.1 billion including AquaVenture’s net debt.

AquaVenture offers point-of-use filtered water systems and related services to more than 55,000 institutional and commercial customers across the U.S. and Canada, and desalination and wastewater treatment solutions to governmental, municipal, industrial and hospitality customers throughout the Americas.

The transaction will result in AquaVenture joining Culligan’s leading consumer water service and solutions platform as a privately held company. Under Culligan’s ownership, AquaVenture will continue its focus on providing world-class service and innovative water treatment solutions for its customers.

“AquaVenture is a leading player in water purification solutions with a strong record of innovation,” said Scott Clawson, CEO of Culligan. “We are excited to work with the AquaVenture team and look forward to the many opportunities ahead.”

Culligan is owned by Advent International, one of the largest and most experienced global private equity investors. Upon the completion of the transaction, AquaVenture will become a privately held company, and shares of its common stock will no longer be listed on any public market.

Under the terms of the agreement, AquaVenture shareholders will receive $27.10 in cash for each ordinary share of AquaVenture they own. The all-cash purchase price represents a premium of approximately 25% to AquaVenture’s closing share price on December 20, 2019, and a premium of approximately 33% to AquaVenture’s 90-day volume weighted average share price.