NEW YORK – Sept. 6, 2016 – Praesidian Capital (“Praesidian”), a leading provider of senior and subordinated capital for small and mid-sized businesses, announced today that it has successfully exited its first-lien debt investment in Aquasana, Inc. (“the Company”), a Texas-based provider of residential water filtration systems and replacement cartridges. Praesidian’s debt investment supplemented an equity investment by L Catterton, the largest consumer-focused private equity firm in the world. Aquasana was acquired in August 2016 by A.O. Smith Corporation, a premier manufacturer of residential and commercial water treatment systems, heaters, and boilers.
Praesidian’s 2015 investment in Aquasana provided capital to support the Company’s vision for strategic growth. With this additional funding, Aquasana was able to further develop its direct-to-consumer residential and retail water treatment capabilities, grow its recurring revenue Water-for-Life continuity program, and launch highly innovative new products including the Aquasana Active® powered pitcher device and on-the-go filtration bottle. Together, these efforts helped Aquasana achieve more than 20% year-over-year revenue growth. Under A.O. Smith’s ownership, Aquasana will serve as a product and geographical extension to A.O. Smith’s leading position in China’s reverse osmosis water treatment market.
“We are grateful for the support and partnership of the Praesidian team which helped us enable growth and attract new owners under A. O. Smith,” said Todd Bartee, Aquasana’s Chief Executive Officer.
Jason Drattell, Founder of Praesidian Capital, stated: “Aquasana has flourished with this investment and evolved its product lines and partnerships to capture greater market share in an increasingly relevant $2 billion industry. We are pleased to have taken part in this growth story alongside L Catterton and to have driven substantial value creation along the way.”
About Praesidian Capital
About Praesidian Capital Praesidian Capital is an innovative private investment firm focused on providing senior and subordinated debt along with growth capital to private lower middle market businesses in the United States, United Kingdom, Germany, and selectively in Northern Europe. Praesidian invests in established small and mid-sized companies, often in connection with management buyouts, recapitalizations, and refinancings. Based in New York City with an office in London, Praesidian manages nearly $1 billion in committed capital. For more information, visit www.praesidian.com.
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