Close Brothers Private Equity (CBPE) today announces that it has backed the management buy-out of Aqualisa, a leading supplier and distributor of domestic showers in the UK, for a total consideration of £82.5m. Aqualisa is being acquired from Baxi Holdings Ltd. (Baxi), the European heating products manufacturer.

The UK is one of Europe’s fastest growing shower markets with an average annual growth rate of 5.9% over the last five years, with more than 2 million showers sold per annum. Long term fundamental growth is being driven by the number of households with a shower forecast to increase from 70% to 90% over the next 10 years (as in other mature economies), and a growing number of showers per house.

Aqualisa’s successful strategy to focus on high quality innovative products has driven growth faster than the market. Its product range comprises mixer, power and electric showers, distributed through plumbers’ merchants and independent showrooms, house builders and DIY retailers including B&Q. In particular, it has a dominant market position in the rapidly growing power shower segment, reflecting the increasing consumer preference towards premium power showers.

The majority of its core products are based on proprietary technology. One of its key growth products is the Quartz digital power shower. Launched in 2001, it has demonstrated annualised growth of over 61% with significant potential for future development both within the UK and new international markets.

Aqualisa currently generates sales of £50 million and operating profits of over £9 million. Established in 1976, the company currently employs 340 staff and is headquartered in Westerham, Kent.

CBPE is backing the incumbent team, led by Harry Rawlinson, Managing Director, and Ian Stuart, who joins the board as Non-Executive Chairman. Mark Perryman will represent CBPE on Aqualisa’s board as Non-Executive Director.

Commenting on the investment, Mark Perryman, Investment Director at CBPE, said:

“Our aim is to back strong management teams to deliver value for our private equity funds. Aqualisa is exactly the type of business we are looking for.”

Harry Rawlinson, Managing Director of Aqualisa, added:

“We are delighted to achieve a buy-out. Our products are well established with strong market positions. The business is growing strongly and we are keen to expand further. ”

“We have a history of successful new product development and our focus on R&D, design and product innovation will support the company’s growth going forward.”

Debt funding for the management buy-out of Aqualisa was provided by The Royal Bank of Scotland (RBOS).

Funds advised by BC Partners previously acquired Aqualisa, as part of Baxi, in March 2004. Baxi is disposing of Aqualisa to focus on its core heating businesses.


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For more information contact:

Close Brothers Private Equity 020 7065 1100
Mark Perryman
Neil Murphy

Merlin 020 7653 6620
Vanessa Maydon
Rebecca Penney