Australian drinking water appliance maker Zip Industries has been taken over by US-based global water treatment firm Culligan International for an undisclosed sum.
Zip, which was sold by Quadrant Private Equity, was expected to list on the Australian share market earlier this year, but the $500 million-plus float was scrapped in May for lack of strong support.
The Sydney-based company’s instant boiling and cold water taps, such as the Zip HydroTap, are a familiar sight in office kitchens, some homes and are are installed in 76 countries.
Zip employs about 700 people and has been making drinking water systems at Condell Park in Sydney’s western suburbs since 1947.
Culligan provides water treatment solutions for the residential, office, commercial and industrial sectors and operates in 90 countries.
Zip chief executive John Doumani said Culligan had recognised Zip as a true Australian success story.
“Importantly, Culligan will support the continued manufacture of Zip appliances from our headquarters in Sydney’s western suburbs, recognising the heritage of our company and the importance of Condell Park as a hub for innovation, design and world-class manufacturing,” Doumani said in a statement on Monday.
Culligan chief executive Scott Clawson said Zip’s focus on Australia, New Zealand and the UK would complement Culligan’s strong presence in North America, Latin America, Europe, the Middle East and Asia.
“We look forward to exploring opportunities to expand Zip’s product range, particularly HydroTap, into new markets internationally,” he said.
Culligan’s acquisition of Zip Industries is expected to be completed in August 2017.