Envirada’s aquisition of Water Dynamics from Questas
VCF Capital acted as financial advisor on the acquisition of Water Dynamics from Questas and associated financing.
April 2024
Company Overview
Envirada is a leading water management business providing hardware and software solutions that increase water efficiency and protect environments.
The business has 140+ employees, 2,100+ customers and 8 manufacturing sites across Australia.
Envirada’s founders have grown the business extensively through a mix of organic and inorganic activities since 2014, having brought together 10+ businesses.
Background
As part of VCF Capital’s ongoing corporate advisory support of Envirada, VCF Capital was engaged to advise Envirada on the acquisition of Water Dynamics, a portfolio company within Questas Group (Allegro backed hydraulics business)
In addition, VCF Capital was engaged to source and manage the raising of acquisition debt financing in order to fully finance the acquisition .
Transaction Summary
In April 2024, with debt financing in place, Envirada completed the acquisition of Water Dynamics, an Australian irrigation business with a network of branches across key irrigation markets in Australia.
This was Envirada’s largest transaction to date, adding 20 leading global and domestic irrigation equipment brands to their existing offering whilst expanding their reach across Australia, adding $60m + in revenue to Envirada’s business. This was a transformative acquisition for Envirada, establishing it as a platform asset in the Australian water management space, primed for future growth.
Outcome
VCF Capital successfully managed a dual acquisition and debt raising process from end-to-end. This was a highly complex transaction process involving the solicitation of a portfolio business from a sophisticated private equity owner, including the following:
Obtaining exclusivity through early engagement with the private equity owner
Detailed modelling & valuation of the target
Substantial term sheet negotiation process
Financial modelling and provision of information associated with the credit raising process with a big 4 lender
Management of the due diligence process including directly undertaking detailed financial and commercial due diligence upon the target
Management of a substantial transaction documentation process including an SPA, TSA and financing documentation