JZ Capital To Get Up To USD37 Million From Portfolio Company's Merger

LONDON (Alliance News) - Microcap investor JZ Capital Partners Ltd said Monday it is to receive up to USD37 million for the disposal of its interest in TWH Water Treatment Industries Inc.

Water Treatment Industries is a subsidiary of Triwater Holdings LLC, one of JZ Capital's portfolio companies, and supplies water treatment chemicals and services in Canada and the US.

Water Treatment Industries has entered a merger agreement with DuBois Chemicals Inc, with Water Treatment Industries shareholders receiving USD148 million in cash on completion of the merger.

JZ Capital's stake in Water Treatment Industries is 35%. This is held mostly via its holding in Water Treatment Industries as well as a 3.6% direct interest.

"The merger effectively involves the company disposing of its ownership interest in Water Treatment Industries. For its ownership interest, the company expects to receive approximately USD32 million," said JZ Capital.

JZ Capital could receive up to an additional USD5 million from an earn-out consideration, provided Water Treatment Industries meets certain targets.

In the financial year ended June 30, Water Treatment Industries made a USD15.4 million gross profit and has gross assets of USD49.2 million.

JZ Capital shares were up 0.7% at 447.00 pence on Monday.

Jz Capital