Press release, December 21, 2005
Berkshire Partners Announces Additional Investment in Waterworks.
Boston, MA, December 21, 2005 -- Boston-based private equity firm Berkshire Partners ("Berkshire") today announced its participation in the recapitalization of Waterworks, the leading specialty retailer of premium bath products. This investment will support Waterworks' continuing growth, and represents Berkshire's ongoing confidence in the Company's unique market position and long term prospects. Berkshire initially made an investment in Waterworks in March 1999. As part of the recapitalization, Bank of Ireland provided debt financing to the Company.
"Waterworks provides products of impeccable style and quality craftsmanship, an extraordinary customer experience and unparalleled relationships with consumers, architects and designers, developers, and contractors," stated Ross M. Jones, Managing Director for Berkshire Partners. "We believe that Waterworks' exclusively designed products and superior service are unequaled in the industry and we look forward to supporting the Company in its next phase of growth."
Peter Sallick, Chairman and CEO of Waterworks since 1993, commented on his enthusiasm for Berkshire's continued involvement, "In 1999, Berkshire Partners provided Waterworks with capital to help fund our growth at a very critical time. Now, Berkshire's continued commitment to our Company will allow us to open additional new stores, expand our product offerings, and continue to strengthen and grow our client relationships."
Waterworks was founded by Robert and Barbara Sallick in Danbury, Connecticut, in 1978 as an importer and wholesaler of specialty plumbing fittings, bath fixtures, tile and other products. Today, under their son Peter's leadership, the Company designs and develops original products in an expanding range of categories including bath fittings, fixtures and tubs, tile, hard surfaces, lighting and furnishings. Waterworks operates 38 stores, a commercial sales division, a direct sales effort, and a limited number of wholesale boutique partners.
Mr. Sallick, Mr. Jones and Chris Clifford, also a Managing Director at Berkshire, will serve on Waterworks' Board of Directors. Berkshire has invested in many consumer product and retailing companies during its 20-year history including Berkshire's recently announced investment in Aritzia, as well as Carter's and Bare Escentuals.
CIBC, an investment banking firm, represented Waterworks in the transaction.
About Waterworks
Waterworks is a specialty retailer of luxury bath products sold under the "Waterworks" brand name. The foundation of Waterworks is its line of bath fittings, fixtures, and surfaces. In addition, the Company has developed additional bath product lines including: lighting and mirrors, textiles, furnishings, apothecary, and personal care items. Waterworks' products are sold through 38 Company stores, a commercial sales force, direct catalog and internet orders, and through six independent boutiques. Additional information may be found at www.waterworks.com.
About Berkshire Partners LLC
Berkshire Partners has invested in mid-sized private companies for the past twenty years through six investment funds with aggregate capital commitments of approximately $3.5 billion. The firm’s investment strategy is to seek companies that have strong growth prospects and to partner with talented management teams who are interested in being owners of the companies they operate. Berkshire has developed specific industry experience in several areas including retailing and related services, transportation, communications, various manufacturing sectors, and business services. The firm's transactions have taken various forms including leveraged buyouts, recapitalizations, privatizations, industry consolidations, and growth equity investments. Berkshire has been an investor in over 85 operating companies with more than $13.0 billion of acquisition value and combined revenues in excess of $17.0 billion. Additional information may be found at www.berkshirepartners.com.