Prospect Partners Acquires Culligan Dealers

Chicago-based Prospect Partners, a private equity firm investing in smaller lower-middle-market companies has acquired eleven of the company-owned dealers of Culligan International, a Rosemont, Ill.-based global provider of household, commercial, and industrial water treatment products and services. In the acquisition, Prospect Partners partnered with two Culligan operating executives and independent equity sponsor Stone Pointe of Naperville, Ill.

PRESS RELEASE

Chicago-based Prospect Partners, LLC, a leading private equity firm investing in smaller lower-middle-market companies, today announced that it has acquired eleven of the company-owned dealers of Culligan International, a Rosemont, Ill.-based global provider of household, commercial, and industrial water treatment products and services. In the acquisition, Prospect Partners partnered with two veteran Culligan operating executives and independent equity sponsor Stone Pointe, LLC, of Naperville, Ill. The acquired dealers, which cover six states, will continue to operate independently under the Culligan brand as units of a new platform company called Prospect Water Co. LLC.
Driven by its mission of providing “better water, pure and simple,” Culligan, founded in 1936, is
a worldwide water treatment leader, with a presence in 90 countries. As the industry’s top
brand, Culligan is the natural choice for consumers and businesses facing “hard water” or other
“problem” water issues. The company distributes its water softeners, water filtration systems,
bottled water, and other related products and services through a network of approximately 900
independently franchised and company-owned dealers.
The dealers acquired by Prospect Partners and Stone Pointe are located in New York,
Connecticut, Rhode Island, Ohio, Indiana, and Washington. Prospect Water Co. will be run by
Prospect Partners Acquires Dealers From Culligan International, Forms New Platform, Con’t.
2
Don Fuller, CEO, and John Capone, COO. Mr. Fuller fulfilled a number of roles during his 34-
year career at Culligan, and most recently was the Vice President of Operational Support for the
Culligan-owned dealership division. In his 26 years at the company, Mr. Capone held various
leadership positions in the Culligan-owned dealership division, and was responsible for sales,
marketing, and operating activities at the branch, regional, and national levels. He most
recently was Director–Central Sales, leading call center and lead generation activities for North
America.
“We are excited to enter the water treatment segment and to back a talented management team
in further building our independent Culligan franchises in their markets,” said Louis Kenter, a
Founding Principal of Prospect Partners. “We also look forward to partnering with Stone Pointe’s
Principal Lee Vandermyde, a proven independent equity sponsor we have known a long time
and have worked with on other investments.”
Serving Prospect Water Co.’s Board are Mr. Kenter, as Chairman, and Prospect Partners’ Vice
President Brad O’Dell and Stone Pointe’s Mr. Vandermyde, as Directors.
Going forward, Prospect Water Co. seeks to acquire other Culligan franchises, independent
water service dealers, and providers of commercial or industrial water purification services.
About Prospect Partners, LLC
Prospect Partners is a leading private equity firm investing in smaller lower-middle-market
companies, managing $470 million across three funds. A highly experienced and active
investor, Prospect Partners focuses exclusively on management-led leveraged recapitalizations
and acquisitions of niche market leaders with revenues typically under $75 million. Since 1998,
Prospect Partners has invested opportunistically nationwide in more than 85 companies in a
broad range of niche manufacturing, distribution, and specialty service markets. Based in
Chicago, Prospect Partners also has an office in Menlo Park, Calif.

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