Water Direct sold a majority stake to Eurazeo

Transacción

Sell-side

Undisclosed

Rol

Adviser to Water Direct on its sale of a majority stake to Eurazeo

Sector

Industrial y Químico

Región

Reino Unido

We have advised Water Direct, the UK’s leading provider of alternative water supply solutions for utilities, businesses and the public sector on its sale of a majority stake to Eurazeo, through Eurazeo Transition Infrastructure Fund (ETIF), a leading European investment group. Our combined team provided M&A, Debt Advisory and Modelling & Data Analytics support.

Headquartered in Colchester (Essex), Water Direct delivers a broad portfolio of essential services, including potable water tankering, bulk and bottled-water logistics and supply, temporary water infrastructure and WaterTight, the company’s flagship resilience-as-a-service assurance solution.

Founded in 1996, Water Direct has grown to become the UK’s leader in alternative water solutions, setting new standards for maintaining uninterrupted access to clean and safe water during planned works and incidents. By leveraging cutting-edge technology, strategic partnerships, and an expanding national network, Water Direct delivers reliable solutions that strengthen resilience across industries, utilities, and communities across the country.

Eurazeo’s investment will support Water Direct’s next phase of growth by accelerating the expansion of its fleet and logistics network and strengthening its digital capabilities. The partnership is designed to enhance the resilience and reliability of alternative water supply for customers nationwide, supporting both routine operations and emergency response.

More about the process

Our M&A team positioned Water Direct as a vital part of the UK water infrastructure and a leader in the alternative water supply market. Using data-driven insights, the team showcased strong core growth and inherent resilience of their proposition, attracting interest from trade buyers, private equity, and infrastructure funds. The competitive process led to Eurazeo being chosen as the natural partner for the next stage of growth.

Our Debt Advisory team supported this transaction by leading lender education, presenting Water Direct’s impressive historical growth trajectory and positive future outlook. This resulted in multiple funding proposals, with Eurazeo selecting the lender best aligned to support the acquisition.

Additionally, our Modelling & Data Analytics team developed a robust, integrated financial model that translated Water Direct’s growth potential into a credible forecast. Built in collaboration with management and underpinned by well-considered assumptions, the model was used extensively by parties throughout the process.

The team at Clearwater provided strong support throughout the transaction. From preparing the business for sale and helping to position it strategically, through to identifying the right investors and managing the process, their sector knowledge and advice were instrumental in achieving a successful outcome with Eurazeo. Clearwater ran a rigorous process that created genuine choice and helped secure a strong future for the business with Eurazeo.

This partnership is a strong endorsement of the critical services our customers rely on every day. With Eurazeo’s backing, we will scale responsibly, expanding capacity, strengthening our nationwide response capabilities and continuing to invest in digital innovation, all with the aim of delivering an even better customer experience across our diverse client base.
Adam Johnson, CEO, Water Direct

Water Direct has become a trusted partner to utilities and businesses by providing essential resilience services and maintaining consistently high service standards. We see significant long-term potential in supporting the company’s next phase of sustainable growth, and we look forward to working with the team as it expands both its offering and its coverage.
Melissa Cohen, Co-Head Infrastructure, Eurazeo

Under the leadership of Adam Johnson, Water Direct has built a leading reputation as the trusted partner to utilities and businesses across the UK. With this recent investment from Eurazeo, we fully expect an acceleration of growth and further enhancement of the resilience and reliability of alternative water supply for customers. We are proud to have played our part in delivering this transaction and are excited to witness the next stage in the group’s development.
Michael Loudon, Head of Industrials and Partner, Clearwater

As pressure grows on our infrastructure, the provision of alternative water supply has become mission critical. Water Direct’s integrated logistics, flexible infrastructure capabilities and data led operations make it the go to partner for continuity of clean, safe drinking water. Led by a high-calibre management team, Eurazeo’s investment will help scale these services nationally, strengthening both routine operations and incident response.
Jeremy Thomas, Director, Clearwater