Waterlogic to Acquire DSK

January 28, 2012

Waterlogic Plc, a  leading manufacturer and global distributor of point-of-use ("POU") drinking water purification and dispensing systems, recently announced that it has agreed to acquire Det Stavangerske Kaffeselskap (DSK).

DSK, based in Norway,  is a leading vendor of water dispensers and coffee machines.  The company was acquired from  Hart AS, Ludwig Hart and the Estate of Johs Lunde Group for a total cash consideration of USD 1.46 million and the deal is  subject  to approval by the Norwegian Competition Authority.

DSK has an existing base of contracted customers located near Waterlogic's Stavanger offices. Following completion of the deal,  DSK will be merged into Waterlogic Norway during 2012, aiming at  driving  turnover and profit growth from cross-selling opportunities and  achieving synergies and cost savings in the combined entity.

"We are very excited to announce the acquisition of DSK, our first since our IPO, which represents excellent value,” said Waterlogic Group CEO, Jeremy Ben-David.

“DSK is a profitable and highly complementary business, allowing the introduction of Waterlogic's point-of-use water purification technology and associated products into the DSK customer base”, he continued. “The DSK coffee machine business will also be expanded into the existing Waterlogic customer base and branch offices throughout Norway and Denmark.”

Erik Gulbrandsen, MD of Waterlogic Norway and Denmark, commented: "The acquisition of DSK is an obvious opportunity to further strengthen Waterlogic's leading position in Norway and Denmark. This will help to ensure our combined client base has full access to products from both DSK and Waterlogic, in addition to the expected cost savings and other synergies from the combined group.”

Waterlogic's expansion by acquisitions is not expected to end here. “We are making good progress with our attractive pipeline of future acquisition opportunities and we look forward to updating shareholders in due course”, Group CEO Ben-David noted.