Brentwood Associates has closed an oversubscribed single-asset continuation fund to support the growth of Watermill Express, a provider of affordable and safe drinking water and ice through self-service stations.
This deal extends Brentwood’s partnership with Watermill’s management while providing capital to support the company’s next phase of growth. The fund is primarily backed by Hollyport Capital, with Pantheon and Portfolio Advisors as co-leads. Brentwood remains confident in Watermill’s growth potential and is also investing through its Fund VII.
Founded in 1984, Watermill operates nearly 1,300 stations across eight states, primarily on the West Coast and in the Sun Belt regions. It has supplied safe drinking water and ice to over 10 million people, preventing more than 15 billion plastic water bottles from entering landfills. Under Brentwood’s investment, Watermill has tripled its adjusted EBITDA through new station openings, upgrades, and acquisitions. The company is well-positioned for further growth, with opportunities to expand its stations and enhance its service offerings.
Advisors/support: PJT Partners served as the lead financial advisor, North Point Mergers and Acquisitions served as the financial advisor, and Kirkland & Ellis LLP served as legal counsel to Brentwood. Proskauer Rose acted as legal counsel to Hollyport.
KEY QUOTES:
“This transaction reflects our deep confidence in Watermill’s continued growth potential and its mission to provide affordable, accessible clean water to communities across the country. We’re proud to support a business that combines strong performance with meaningful social impact, and we’re pleased to have delivered what we believe is a compelling outcome for our investors while continuing our partnership with Watermill and its talented executive team.”
Eric Reiter, Partner at Brentwood and Chairman of the Board of Watermill
“With the close of this transaction, Watermill is well capitalized and strongly positioned to expand our mission of addressing America’s clean water challenge. For over 40 years, our self-service kiosks have made high-quality, affordable drinking water and ice accessible to communities that need it most. We’re proud to work alongside grocery, convenience, and shopping-center landlords who recognize the value of offering essential, sustainable services to their neighborhoods. As we grow into new markets, we look forward to partnering with property owners who see the opportunity to make a meaningful local impact, while also enhancing the utility and appeal of their locations.”
Mike Gallagher, CEO of Watermill
“This third-party-led process provided our investors with an accelerated realization option at a market-driven price, while also expanding the resources available to Watermill to continue executing its long-term growth strategy. We are grateful for the support of both existing Brentwood limited partners and new investors in the continuation fund.”
Toros Yeremyan, Managing Director at Brentwood
“Hollyport is delighted to grow our partnership with Brentwood as the lead investor in the continuation fund. We are excited to partner with Watermill on its continued expansion.”
Richard Grindrod, Partner at Hollyport
