JZ Capital Partners announced the sale of Paragon Water Systems to residential, office, commercial and industrial water treatment company Culligan Water on Wednesday.
The London-listed specialist fund said it expected to realise around $16.2m in gross proceeds from the sale, representing an increase of $3.7m on the carrying value of Paragon as of 31 January.
In addition to increasing its overall net asset value by 0.4%, JZ's board said the transaction represented a gross multiple of invested capital of approximately 1.8x, and a gross internal rate of return of approximately 18.4%.
Founded in 1988 and headquartered in Tampa, Florida, JZ Capital said Paragon developed and produced 'point-of-use' water filtration products for a number of global original equipment manufacturer clients, name brand suppliers to specialty and big box retailers, direct sales organisations and companies with national or international water filtration dealership networks.
“We are pleased with this realisation above JZCP's net asset value,” said the fund's founder and investment adviser David Zalaznick.
“One of our objectives is to demonstrate to shareholders and potential new investors that our NAV is conservatively valued.
“We hope to continue our realisation cycle and build liquidity for our previously stated goals of making new investments, paying down debt and buying back stock.”
The transaction follows the recent announcement that JZ Capital Partners was to sell Bolder Healthcare Solutions to a subsidiary of Cognizant for gross proceeds of approximately $108m, representing an increase in net asset value of approximately 4.3% as of 31 January.