Bottled water producer Noble Beverages up for sale

Gillian Tan
The Wall Street Journal
June 20, 2013

NOBLE Beverages, which claims to produce Australia’s purest drinking water and supplies the country’s air force, is up for sale.

Sydney-based private equity firm Hawkesbridge Capital, which took a majority stake in the producer in 2004, is handling the sale, according to a flyer seen by The Wall Street Journal.

Noble’s flagship water brand is Pureau, which was founded in 1987. The company says it is the only Australian water that is guaranteed to be free of bacteria, fluoride, chlorine, sodium and other impurities found in tap water.

The group’s water is distributed through Coles and Woolworths, as well as the Metcash-operated IGA grocery stores. Its suppliers include water heavyweights such as Veolia, Schlenker and Scholle.

The Australian bottled water industry had estimated revenue of $570 million in 2011, according to the flyer, citing data from IBIS. It predicts a 2.6 per cent annual growth rate between 2011 and 2016.

By contrast, Pureau has delivered a compound annual growth rate of 14 per cent since 2010 with 5 per cent growth likely in future, it said.

Its revenue in the 2012 fiscal year was about $12m, while adjusted earnings before interest, tax and depreciation was about $2m. A multiple of six times would put a price tag of $12m on the business.