Waterlogic, an Ireland-based designer, manufacturer, distributor and operator of point-of-use (POU) drinking water purification and dispensing systems, has signed a conditional agreement to purchase POU supplier Cool Clear Water Group (CCWG) of Australia for around A$60m ($58.5m).

The acquisition, which includes the entire share capital of CCWG, marks the entry of Waterlogic into Australian water cooler market.

CCWG has presence in all the states in Australia and has installed over 26,000 POU coolers.

The acquisition will boost the group’s B2B division and will enhance the group’s revenues, which touched A$16.9m ($16.4m) in the year ended 30 June 2012.

Of the total A$60m ($58.5m), A$6.1m ($6m) is held in escrow and will be released after the performance targets are achieved.

The deal, which is expected to finalise in June 2013, will be financed through existing cash resources and new debt facilities.

Waterlogic commercial division CEO Peter Cohen said the company is very pleased to have been able to agree terms to acquire the market leader in what is a significant new geography, further enhancing the group’s reputation as a truly global brand.

"CCW has already built up a significant market share and we are confident that once the deal completes, through the additional scale and expertise of the Waterlogic team, we will be able to grow this further through both organic growth and acquisition," Cohen added.

"The wider opportunities presented by this landmark acquisition are plentiful; we are particularly excited about the possibility of introducing Firewall into the Australian market and also developing the Group’s B2C offering in the territory."

Waterlogic Group CEO Jeremy Ben-David said this acquisition will be a further step in achieving what they set out to do at the time of their IPO and once completed, will be the most transformational acquisition the group has done to date.

"CCW’s financial performance is strong with high levels of recurring revenues, strong organic growth and good margins. Significantly for the Group, the acquisition further diversifies the business from a geographic perspective and we believe it will be a fantastic platform for our growth in Australia," Ben-David said.

CCWG joint CEO Adam Cornell and David Byrne said, "We believe that Waterlogic, as a global player in the sector, has the strategy and structure to drive CCW into its next stage of growth."