JZ Capital Ptnrs Ltd JZCP Announces Sale of Paragon Water Systems
14 March 2018 - 6:00PM
UK Regulatory
TIDMJZCP TIDMJZCC TIDMJZCN
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.
END
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