1 December 2014
Eden Springs completes acquisition of Nestlé Waters Direct businesses in Germany, Portugal and the Netherlands
1 December 2014
- New businesses provide additional springboard for Eden’s ongoing expansion into workplace water and coffee services
- Deal reflects Eden’s confidence in the long-term potential of the workplace drinks sector
- Eden Springs, a leading European provider of office water and coffee solutions, has completed the first step in the acquisition of three of the five Nestlé Waters Direct (NWD) water cooler businesses from Nestlé Waters. The overall acquisition of the five NWD businesses was agreed with Nestlé Waters in early September. The three NWD businesses in Germany, Portugal and the Netherlands, transfer to Eden Springs today, marking the first stage in bringing these two organizations together as one team and providing a springboard for future growth.
Raanan Zilberman, CEO of Eden Springs, said: "The successful completion of the first tranche of the acquisition from Nestlé is an exciting one. Today, we welcome the Nestlé Waters Direct customers and employees in Germany, Portugal and the Netherlands, into the Eden family."
The deal provides a key opportunity for Eden Springs’ ongoing expansion into the provision of water and coffee service solutions across Europe. Zilberman commented, "The acquisition will enable us to bring our new water cooler customers an even more compelling product offer, including a full range of office coffee solutions, along with Eden’s renowned service excellence."
Post-acquisition, Eden’s installed water and coffee client base will reach approximately 1 million1
. Legacy NWD customers will now enjoy the added bonus of selecting from a broad range of branded workplace coffee solutions, including Lavazza, Mars, Dowe Egberts, Gimoka, and its own label, Edenissimo.
The deal reflects Eden Springs’ confidence in the long-term potential of the European workplace beverages sector. Zilberman commented, "We are particularly excited to enter Germany, Europe’s largest economy, and a country that offers strong prospects in both water and coffee."
Germany saw the greatest volume growth in EU workplace water services, up 6% in 2013, and has one of the highest office coffee consumption levels in Europe, of more than two cups per day.2
Zilberman concluded, "This deal demonstrates our serious intention to continue long-term development and expansion in the resilient and profitable workplace drinks sector. The new scale for Eden provided by the acquisition will allow us to increase investment in operational and service excellence, and is an important milestone in realizing our vision to be every European workplace’s favorite water and coffee service provider."
Eden expects to close the acquisition of the remaining two NWD businesses in Poland and Russia in 2015, subject to customary regulatory and other approvals. When finalised, the total deal is expected to increase Eden’s annual turnover to approximately €370m3
. The acquisition has been and will be financed through a combination of equity and debt.
Forward-looking Statements and Financial Information
This press release may include projections and other “forward-looking” statements within the meaning of securities laws. Any such projections or statements reflect the current views of Eden Springs about further events and financial performance and such statements are not undertakings as to the future performance of Eden Springs. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from these projections.
The financial information included in this press release give pro forma effect to the NWD acquisition that is based solely on preliminary reports prepared by management. Because this financial information is preliminary and not prepared in accordance with international financial reporting standards, the numbers presented are estimates and could change. This financial information has not been reviewed by any audit firm and is inherently subject to modification during the preparation of financial statements.
1 Installed client base is a total approximation of water and coffee dispensing units across Eden’s portfolio.
2 Source: Zenith 2014 Water Cooler Report, internal company research study
3 Revenue gives full year pro forma effect to the Kafevend acquisition in 2013