Despite deep-pocketed owners and outside funding that has netted the company nearly $20 million dollars over the last four years, Aquahydrate, one of the leading players in the alkaline water category, recently secured up to $10 million in debt financing for the purpose of “working and growth capital needs,” according to a press release from Salus Capital Partners, which provided the asset-backed credit.
Salus Capital Partners, a Boston-based lender that describes itself as “a direct originator of secured asset-based loans to the middle market across a variety of industries,” is known in financial circles for lending to distressed businesses, including RadioShack (which filed for bankruptcy last week) and clothing retailers American Apparel and Delia’s.
Salus’ deal with Aquahydrate, whose primary shareholders include actor Mark Wahlberg and music and fashion mogul Sean Combs, is the firm’s first foray into the food and beverage business, according to an article published by Dow Jones & Co. Andy Moser, Salus’ co-founder and CEO, told Dow Jones that his firm would continue to look for and identify other opportunities to invest in the food and beverage industry as well as that of all businesses focused on consumer health and wellness.
Aquahydrate was advised by Intercontinental Beverage Capital (IBC), a New York-based investment and advisory firm, whose executive team includes new Aquahydrate CEO Hal Kravitz. With his role at Aquahydrate formally announced on Jan. 13, Kravitz, a managing director of Intercontinental Beverage Capital with over 30 years experience in the beverage business, was a key component of the recent financing deal.
In an interview with BevNET, Joseph Messina, president, IBC, said that Kravitz’ brought to Aquahydrate a high level of beverage industry experience and expertise, with the ability to increase operating efficiencies and quickly expand distribution of its products. Salus also saw value in the predictability of future cash flow for Aquahydrate, Messina said.
Messina said that the debt financing is backed by company assets, including receivables and the Aquahydrate brand name.
Reached by e-mail, Aquahydrate declined to offer comment on the deal with Salus.
Here is the full release announcing the new source of funding.
BOSTON, Feb. 5, 2015 /PRNewswire/ –– Salus Capital Partners, LLC, announced it has provided up to $10 million in debt financing to AQUAhydrate, Inc., a Southern California-based performance lifestyle beverage company. The financing will be used to fund the company’s working and growth capital needs.
AQUAhydrate® has pioneered a new category of performance lifestyle beverages and is positioned to transform the beverage industry as consumers continue to switch from high calorie artificial beverages to more innovative and healthy options. AQUAhydrate recently achieved the status of being the fastest growing water company in the US according to AC Nielsen reporting, and is widely regarded as the leader in the alkaline water category.
“We’re very grateful to have Salus Capital in our corner,” said Hal Kravitz, CEO of AQUAhydrate. “Salus carries with them a strong capability in structuring loans and a passion for seeing businesses thrive. They’ve been important partners for us at this time of tremendous growth, and we’re thrilled to have their guidance as we continue to explore the possibilities.”
“The AQUAhydrate brand has seen significant expansion since its inception. Salus is proud to partner under the veteran leadership ofHal Kravitz and his team to help the company meet their growth objectives,” said Andrew H. Moser, Co-Founder, President and CEO of Salus Capital. “We are excited to grow our Food & Beverage industry portfolio with a company who is committed to producing an innovative and high quality product.”
AQUAhydrate was advised by Joseph J. Messina, President, Intercontinental Beverage Capital Inc. (IBC) a New York-based Merchant Bank focused specifically on the beverage and consumer packaged goods industries. IBC acted as the Placement Agent for the transaction.
About Salus Capital Partners, LLC
Salus Capital is a direct originator of secured asset-based loans to the middle market across a variety of industries with additional complementary financing throughout the capital structure. Target transaction sizes range from $5 to $50 million, with the ability to hold up to $100 million and to syndicate larger transactions. The Salus Capital platform may also serve as an asset manager for like-minded institutional investors such as community and regional banks, insurance companies, family offices, private equity funds and hedge funds who may lack the infrastructure and dedicated competency within senior secured lending. For more information, please visitwww.saluscapital.com
AQUAhydrate, Inc. is a Southern California-based performance lifestyle beverage geared towards the new generation of Millennial consumers. Through a proprietary process, its water is purified to some of the most rigorous standards in the industry, supplemented with electrolytes and natural trace minerals and then elevated to an alkaline pH of over 9. It is this powerful synergy between alkalinity, electrolytes and minerals which fuels ultimate hydration, balance and performance. AQUAhydrate is the water of choice for a myriad of health/fitness authorities, professional athletes, and sports teams. AQUAhydrate also boasts active investors and board membersMark Wahlberg and Sean “Diddy” Combs as owners. AQUAhydrate is available at retail locations across the U.S. and atwww.aquahydrate.com. Follow on Facebook (facebook.com/AQUAhydrate) and Twitter (@AQUAhydrate).