Quadrant acquires Australian water dispensing business

According to the Australian Financial Review, Quadrant will take an approximately two thirds stake in the business with the family of Michael Crouch, Zip’s executive chairman who is now in his 80s, retaining the rest. The transaction values the company at A$300 million ($274 million).

Crouch assumed control of Zip, then a small Sydney-based manufacturer of domestic water heaters, in 1962. Small on-wall instant boiling water heater were introduced to the Australian market in the early 1980s and were subsequently shipped to New Zealand and Southeast Asia, followed by the UK, South Africa and the Middle East.

The HydroTap comprises an under-bench control cabinet that delivers boiling and chilled filtered water through an electronically controlled tap on the sink. The company is looking to introduce new product models and expand into additional overseas markets.

Chris Hadley, managing director at Quadrant, told The Australian that he became interested in buying the business after installing a HydroTap in his home.

Quadrant is currently investing its third fund, which closed in December 2010 at A$750 million.

The PE firm recently agreed to buy APN News & Media's stake in their outdoor advertising joint venture for A$69 million. In October Quadrant fully exited New Zealand retirement village operator Summerset and also bought a majority stake in Australian aged care operator Estia Health.

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• Topics
• Buyouts
• Australasia
• Consumer
• Consumer
• Australia
• buyout
• Quadrant Private Equity