JZ CAPITAL
PARTNERS ANNOUNCES SALE OF PARAGON WATER SYSTEMS FOR 1.8x GROSS
RETURN ON INVESTMENT
~ $16.2
million in gross proceeds realised, delivering an
18.4% IRR ~
14 March 2018
JZ Capital Partners Limited (LSE:JZCP.L or “JZCP”), the
London listed fund that invests in
US and European microcap companies and US real estate, is pleased
to announce the sale of Paragon Water Systems, Inc. (“Paragon”) to
Culligan Water, the world leader in
residential, office, commercial and industrial water treatment.
Founded in 1988 and headquartered in Tampa, Florida, Paragon develops and produces
“point-of-use” water filtration products for leading global
Original Equipment Manufacturer (“OEM”) clients, big brand
suppliers to specialty and big box retailers, direct sales
organisations and companies with national or international water
filtration dealership networks.
JZCP expects to realise approximately $16.2 million in gross proceeds (including
escrows) from the sale, representing an increase of approximately
$3.7 million, or 29.6% on the
carrying value of Paragon of approximately $12.5 million as of 31
January 2018. In addition to increasing JZCP’s overall NAV
as of January 31, 2018 by
0.4%, this transaction represents a gross multiple of invested
capital (“MOIC”) of approximately 1.8x and a gross internal rate of
return (“IRR”) of approximately 18.4%.
David Zalaznick, JZCP’s Founder
and Investment Adviser, commented: “We are pleased with this
realisation above JZCP’s net asset value. One of our objectives is
to demonstrate to shareholders and potential new investors that our
NAV is conservatively valued. We hope to continue our realisation
cycle and build liquidity for our previously stated goals of making
new investments, paying down debt and buying back stock.”
The transaction follows the recent announcement that JZCP is to
sell Bolder Healthcare Solutions (“BHS”) to a subsidiary of
Cognizant, one of the world's leading professional services
companies, for gross proceeds of approximately $108.0 million, representing an increase in NAV
of approximately 4.3%, as of 31 January 2018.
Ends
For further information:
Ed Berry / Kit Dunford
FTI Consulting
+44 (0) 20 3727 1143
David Zalaznick
Jordan/Zalaznick Advisers, Inc.
+1 212 485 9410
Paul Ford
JZ Capital Partners
+44 (0) 1481 745383
About JZCP
JZ Capital Partners (“JZCP”) is one of the oldest closed-end
investment companies listed on the London Stock Exchange. It seeks
to provide shareholders with a return by investing selectively in
US and European microcap companies and US real estate. JZCP
receives investment advice from Jordan/Zalaznick Advisers, Inc.
(“JZAI”) which is led by David
Zalaznick and Jay Jordan.
They have worked together for more than 35 years and are supported
by teams of investment professionals in New York, Chicago, London and Madrid. JZAI’s experts work with the existing
management of microcap companies to help build better businesses,
create value and deliver strong returns for investors. For more
information please visit www.jzcp.com.