Item 1.02. Termination of Material Definitive Agreement
In connection with the closing of the Merger, on March 30, 2020, AquaVenture
repaid in full and terminated its Credit Agreement, dated as of August 4, 2017,
among AquaVenture, AquaVenture Holdings Peru S.A.C., Quench USA, Inc.,
AquaVenture Holdings, Inc., the guarantors from time to time party thereto, the
lenders from time to time party thereto and Wells Fargo Bank, N.A., as
administrative agent and collateral agent, as amended.
Item 2.01. Completion of Acquisition or Disposition of Assets
Completion of the Merger
As described above in the Introductory Note to this Current Report on Form 8-K,
on March 30, 2020, AquaVenture completed the Merger pursuant to the Merger
Agreement and became a subsidiary of Parent. Pursuant to the Merger Agreement,
at the effective time of the Merger (the "Effective Time"):
· each AquaVenture ordinary share, of no par value per share (collectively, the
"Shares"), issued and outstanding immediately prior to the Effective Time
(other than shares held by AquaVenture in treasury or owned by Parent or
Merger Sub) was cancelled and converted into the right to receive $27.10 in
cash, without interest (the "Merger Consideration");
· each AquaVenture stock option, whether vested or unvested, that was
outstanding immediately prior to the Effective Time, was cancelled
automatically in exchange for the right to receive an amount in cash (without
interest and less any applicable tax withholdings) equal to the excess, if
any, of the Merger Consideration over the applicable per share exercise price
of such AquaVenture stock option;
· each AquaVenture restricted stock unit, whether vested or unvested, that was
outstanding immediately prior to the Effective Time, vested in full and was
cancelled in exchange for the right to receive an amount in cash (without
interest and less any applicable tax withholdings) equal to the Merger
Consideration; and
· each AquaVenture phantom unit, whether vested or unvested, that was
outstanding immediately prior to the Effective Time, vested in full and was
cancelled in exchange for the right to receive an amount in cash (without
interest and less any applicable tax withholdings) equal to the Merger
Consideration.
The foregoing summary does not purport to be complete and is qualified in its
entirety by reference to the full text of the Merger Agreement, which is
incorporated by reference as Exhibit 2.1 hereto and incorporated herein by
reference.
The total amount of funds required to complete the Merger and related
transactions and pay related fees and expenses was approximately $1.1 billion,
which was funded through a combination of equity contributions from investment
funds affiliated with Advent International, which is the ultimate controlling
shareholder of Culligan, cash of AquaVenture, as well as proceeds from debt
financing.
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Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing
On March 30, 2020, AquaVenture notified the New York Stock Exchange (the "NYSE")
that the Merger was completed, and on the same day, trading of the Shares on the
NYSE was suspended. In addition, on March 30, 2020, AquaVenture requested that
the NYSE file a delisting application on Form 25 with the Securities and
Exchange Commission (the "SEC") to report the delisting of the Shares from the
NYSE. AquaVenture intends to file a certification on Form 15 with the SEC
requesting that AquaVenture's reporting obligations under Sections 13 and 15(d)
of the Securities Exchange Act of 1934, as amended, be suspended.
Item 3.03. Material Modifications to Rights of Security Holders
The information set forth under the Introductory Note and Item 2.01 of this
Current Report on Form 8-K is incorporated herein by reference.
Item 5.01. Changes in Control of Registrant
As a result of the Merger, a change in control of AquaVenture occurred, and
AquaVenture is now a subsidiary of Parent. Parent is controlled by Advent
International. The information set forth under the Introductory Note and Items
2.01 and 5.02 of this Current Report on Form 8-K is incorporated herein by
reference.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers
In connection with the Merger, each of Anthony Ibarguen, Douglas Brown, Debra
Coy, Hugh Evans, Paul Hanrahan, David Lincoln, Cyril Meduña, Richard Reilly and
Timothy J. Whall, being all of the directors of AquaVenture as of immediately
prior to the Effective Time, resigned from his or her respective position as a
member of the Board of Directors of AquaVenture, and any committee thereof,
effective as of the Effective Time. As contemplated by the Merger Agreement, the
following individuals became directors of AquaVenture following the Merger:
Samuel Allen Hamood and Andrew Kellogg.
Samuel Allen Hamood. Mr. Hamood currently serves as Executive Vice President and
Chief Financial Officer at Culligan and as the sole director of Merger Sub. Mr.
Hamood joined Culligan in 2019. Prior to his time at Culligan, Mr. Hamood served
as interim Chief Executive Officer and President of ATI Physical Therapy
("ATI"). Prior to his time at ATI, Mr. Hamood served as Executive Vice President
and Chief Financial Officer of Change HealthCare Corporation, a leading provider
of software and analytics, network solutions and technology-enabled services.
Prior to his role at Change HealthCare, Mr. Hamood served as Executive Vice
President and Chief Financial Officer of the TransUnion Corporation, a leading
global risk and information solutions provider to businesses and consumers. Mr.
Hamood is a Certified Public Accountant (inactive status) and a graduate of The
University of Iowa, where he earned a Bachelor of Business Administration in
finance, and Southwestern University School of Law, where he earned his Juris
Doctorate.
Andrew Kellogg. Mr. Kellogg currently serves in the capacity of Vice President,
Treasurer and Investor Relations of Culligan. Mr. Kellogg joined Culligan in
2019. Mr. Kellogg previously served as Treasurer and Director of Investor
Relations of SunCoke Energy, the largest independent producer of high-quality
metallurgical coke in the Americas. Mr. Kellogg is a graduate of The University
of Iowa, where he earned a Bachelor of Business Administration in finance, and
The University of Chicago - Booth School of Business, where he earned his MBA
with a focus in finance, accounting and management strategy.
Messrs. Hamood and Kellogg are not related to any officer or director of the
Company. With respect to each of Messrs. Hamood and Kellogg, there are no
arrangements or understandings between such director and any other persons
pursuant to which he will serve as a director. There are no transactions or
relationships between any of Messrs. Hamood and Kellogg and the Company that
would be required to be reported under Item 404(a) of Regulation S-K.
Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal
Year
In connection with the completion of the Merger, AquaVenture's amended and
restated memorandum and articles of association were amended and restated so as
to read in their entirety as set forth in an exhibit to the Merger Agreement.
The Amended and Restated Memorandum of Association and Articles of Association
are filed as Exhibit 3.1 hereto and are incorporated herein by reference.
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Item 8.01. Other Events
On March 30, 2020, AquaVenture and Parent issued a joint press release
announcing the completion of the Merger. A copy of the press release is attached
hereto as Exhibit 99.1 and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
Exhibit
No. Title
2.1 Agreement and Plan of Merger, dated as of December 23, 2019, among
Culligan International Company, Amberjack Merger Sub Limited and
AquaVenture Holdings Limited (incorporated herein by reference to Exhibit
2.1 to AquaVenture Holdings Limited's Current Report on Form 8-K filed with
the SEC on December 23, 2019).
3.1 Amended and Restated Memorandum of Association and Articles of
Association of AquaVenture Holdings Limited.
99.1 Joint Press Release, dated March 30, 2020.
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