Plotted by close date where disclosed, otherwise announcement. Select any marker to jump to the deal entry.
Three patterns run through AAON's acquisitions — what it looks for, how it pays, and how it folds in what it buys.
2 acquisitions — each with the deal value, financing structure, target revenue, and executive commentary where disclosed.
AAON purchased substantially all of the assets of WattMaster Controls, Inc. (WCI) — primarily intellectual property, receivables, inventory and fixed assets. WCI, based in Parkville, Missouri, had been a long-time controls supplier to AAON. AAON hired substantially all WCI employees and leased WCI's former facility to run the operation.
We are very excited about this strategic addition to our business. This acquisition allows us to quickly bring in-house the expertise and knowledge needed to accelerate the development of our own controls, which we believe to be an integral part of our continued efforts to improve our products and increase our customer satisfaction.Gary Fields — President, and Norman H. Asbjornson, CEO, AAON
AAON acquired 100% of the equity interests of BasX, LLC (dba BasX Solutions), headquartered in Redmond, Oregon, via a membership interest purchase agreement. BasX designs, engineers and manufactures custom, high-efficiency cooling solutions for the hyperscale data center market, plus cleanroom systems for bio-pharmaceutical, semiconductor, medical and agriculture customers, and custom air handlers and modular solutions. It operated a ~200,000 sq ft plant and was expected to realize roughly $70 million of revenue in 2021 with a mid-to-high double-digit EBITDA margin. A related $22 million real estate purchase from affiliate BasX Properties, LLC was expected to close by the end of Q1 2022. $100 million cash at closing, plus up to $80 million in contingent common-stock earn-outs (2021–2023), plus $22 million for related real estate.
This is a significant milestone in our Company's history, and we are pleased to formally welcome the BasX Solutions family to AAON. Strategically, this acquisition provides AAON with an immediate presence in the high-growth data center and cleanroom markets, both of which the Company has historically had minimal exposure. The growth and profitability fundamentals of these new markets are very compelling, and we are eager to leverage the BasX platform with our financial strength and manufacturing capacity to drive accelerated share gains.Gary Fields — President and CEO, AAON
Earnings call following the close: "million from $115.8 million. Organic volume growth contributed approximately 21.3% to net sales, and the acquisition of BasX Solutions contributed 18.1%, with the remainder coming mainly from price increases. A record backlog at the beginning of the quarter, along with improved production rates, drove the robust volume growth. Record production rates in the first quarter reflect an easing of supply chain issues, greater production capacity, and strong performance from our operational team. Our gross profit increased 38.9% to $46.1 mil"