WaterWipes has sold a majority stake to 3i Group plc

Arrowpoint Advisory’s Consumer, Retail and Leisure sector team has advised the management of WaterWipes, a leading premium wet wipe brand, on its sale to 3i Group plc (“3i”), the leading in international investment manager.

As part of the transaction, WaterWipes’ Founder, Edward McCloskey, is retaining a significant minority position, with the leadership team led by Paul Heeringa, CEO, re-investing and partnering with 3i.

WaterWipes’ products are 99.9% water and made from only two natural ingredients. The purity makes its products highly differentiated and proven effective to help prevent and reduce negative skin reactions. The company is globally accredited by skin health and allergy institutions and endorsed by healthcare professionals.

Headquartered in Drogheda, Ireland, WaterWipes is geographically diversified with sales in over 50 countries and double-digit growth in both offline and online channels. The company provides an essential everyday product with over 90% of its customers using wet wipes at least once per day. WaterWipes’ superior product quality has led to market-leading levels of customer loyalty and advocacy, with the company generating consistent growth for over a decade and a CAGR of over 20% since 2017.

WaterWipes is the clear premium-segment leader in the c.€12 billion personal care wet wipes market, which is forecast to grow strongly driven by increased hygiene awareness following COVID and demand for convenience. With plant-based plastic-free wipes and natural ingredients, WaterWipes is also an industry leader in sustainability.

3i is investing to further accelerate WaterWipes’ growth. 3i will support the company’s expansion in Europe, Latin America and Asia, driving growth in its core Baby and Children’s range as well as capturing further opportunities in additional categories such as Adult and Convenience

Edward McCloskey, Founder and Executive Chairman, WaterWipes, said: “I’m delighted to be partnering with the team at 3i. They bring deep experience across our value chain, from manufacturing personal care products and scaling premium brands to working closely with leading international offline and online retailers.”

Paul Heeringa, CEO at WaterWipes, commented: “Simon, Jamie and the Arrowpoint Advisory team were instrumental in supporting our leadership team navigate through the complexities of the transaction. They went above and beyond to make sure we understood each element of the deal, whilst being relentlessly focused on making sure we ended up with the best possible commercial terms moving forward – we look forward to working with them again in the future.”

Jamie Hutton, Director at Arrowpoint Advisory, added: “WaterWipes is a true entrepreneurial success story and it has been a pleasure working with the team on this part of its journey. However, with its superior product and brand positioning, WaterWipes still has so much room for growth globally – under new ownership, aligned stakeholder interests and a clear strategic vision we look forward to the business continuing its exceptional growth trajectory and wish them every success moving forwards.”

Simon Cope-Thompson, Managing Director at Arrowpoint Advisory, concluded: “3i’s significant experience in branded consumer and international expansion will be invaluable to Ed, Paul and the wider WaterWipes team – we are delighted to have advised on this exciting partnership and look forward to watching the business accelerate growth under new ownership.”

Contact the deal team

Discover our Management Advisory transactions