Simmons & Simmons has advised Strauss Water on a joint venture with Virgin Group.  The Joint Venture will offer purified water based on Strauss’s proprietary technology, initially in the UK and Ireland with additional countries targeted for expansion at a later stage. Virgin Strauss Water will utilise the Virgin and Strauss Water brands.

Strauss Water and the Virgin Green Fund (“VGF”), an independent private equity firm affiliated with the Virgin Group, intend to invest $10M in cash in the venture ($2.5M and $7.5M respectively).  Strauss Water is also contributing its existing UK business.  Following this investment Strauss Water will own 58% and Virgin Green Fund 42% of the joint venture. Within the next few months the parties have the option to increase the total investment to $20 million to fund the joint venture’s future growth. Assuming the additional funding, Strauss Water will own 51% and Virgin Green Fund 49% of the joint venture.

The Simmons & Simmons team was led by corporate partner Alan Karter, supported by corporate associates Gemma Baddeley and Michiko Jo. Specialist intellectual property advice was also provided.

Commenting on the transaction, Alan Karter said: “It has been a pleasure to be able to contribute to what is expected to become a significant business with a distinctive product in a growing market.  We have worked closely with the team at Strauss Water in putting the joint venture together”.

Michael Avner, General Counsel of Strauss Group said: “This is a significant venture for Strauss Water and we appreciate the support and advice provided throughout the process by Alan and his team”.