Quadrant to exit Australia's Zip Industries via trade sale

Plans to list the company domestically were reportedly abandoned in May due to weak market sentiment. Several other private equity-backed IPOs have been pulled in recent weeks for the same reason. Quadrant acquired a majority stake in Zip in late 2013 at an estimated valuation of A$300 million (then $274 million).

Founded in Sydney in 1947, Zip initially produced small water heaters. On-wall hot water systems capable of delivering boiling water instantly were introduced in the 1970s The company is now best known for the HydroTap, which comprises an under-bench control cabinet that delivers boiling and chilled filtered water through an electronically controlled tap on the sink.

Under Quadrant’s ownership, Zip wanted to introduce new product models and expand into additional overseas markets. The company now manufactures a range of Hydrotaps – as well as water heaters and coolers, filters, and chilled water fountains – that are distributed to users in 76 countries.

Culligan, which is owned by Advent International, provides water treatment services, ranging from drinking water systems to bottled water delivery, to residential, office, commercial and industrial clients. It has a network of more than 800 dealers in 90 countries. The company sees Zip’s Australia, New Zealand, and UK businesses as complementary to its existing footprint.

“I believe these businesses are a great fit with a shared focus on water purity, convenience, technology and innovation. By working together, we look forward to exploring opportunities to expand Zip’s product range, particularly HydroTap, into new markets internationally,” Scott Clawson, president and CEO of Culligan International, said in a statement.

This is Quadrant’s second announced exit within two months, following an agreement to sell oncology services provider Icon Group to QIC, Goldman Sachs and Pagoda Investment in a deal worth around A$1 billion ($746 million).

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• Topics
• Australasia
• Consumer
• Trade sale
• Australia
• Quadrant Private Equity
• Exit