Water Pik Complies With IRS Order by Agreeing to Sell 2 Million Shares

Water Pik Technologies Inc. in Newport Beach said Tuesday it agreed to sell nearly 2 million shares of common stock to two investment funds managed by Special Value Investment Management LLC for $7.60 a share, or a total of $15 million.

Water Pik, which makes personal health care products as well as pool products and heating systems, said the investment will enable it to fulfill its equity offering obligation resulting from its 1999 spinoff from Allegheny Technologies Inc.

After the Allegheny spinoff, the Internal Revenue Service determined that Water Pik would be required to raise $15 million in equity capital.

Water Pik, which expects to complete the transaction in the next few days, said it will use the funds for new product plans and developing lower-cost manufacturing methods.

After the investment, Water Pik will have about 11.9 million shares outstanding, and Special Value Investment Management said it will be the largest Water Pik shareholder.

The stock edged up 13 cents to $7.13 a share on the New York Stock Exchange.