MidOcean Nears Buy of Water Pik

MidOcean Partners is buying Water Pik, sources said.

It’s unclear how much the deal is valued. However, Water Pik is currently in the market for a $335 million loan to back MidOcean’s purchase of the company, Thomson Reuters Loan Pricing Corp. said.

In February, Reuters reported that EG Capital had put Water Pik up for sale. Harris Williams is advising. Water Pik could fetch upwards of $400 million, Reuters said.

New York-based EG Capital, which invests mainly in consumer products, acquired a 60% stake in Water Pik in 2007. The Carlyle Group, one of the sellers at the time, retained 40%, Moody’s Investors Service said. The deal was valued at $124 million and includes a $32 million equity injection, Moody’s said. EG invested $19.2 million, S&P Capital IQ LCD said.

Carlyle still retains a stake in Water Pik, a different person said. News of the sale to MidOcean was previously reported by Bloomberg.

Fort Collins, Colo.-based Water Pik sells oral health products like sonic toothbrushes and water flossers, as well as shower heads. The company generated $177 million in revenue for the trailing 12-months ended March 31, Moody’s said.

For EG, the sale won’t be the first time the PE firm has gotten some money back. Water Pik in 2011 paid out a $145 million dividend to investors, S&P said.

News of the auction comes as MidOcean was expected be fundraising this year. The New York-based private equity firm raised its last buyout fund in 2007, collecting $1.35 billion at that time. MidOcean Partners III LP is generating a net IRR of just 1.5%, according to Sept. 30 data from CalPERS.

MidOcean is trying to improve the performance of Fund III before coming back to market, one placement agent said.

Officials for Water Pik declined comment. MidOcean and EG Capital did not return calls and messages

–Olivia Oran contributed to this report

Photo courtesy of Water Pik

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