Deal

Watts Water Technologies acquires AERCO International, Inc.

December 2014 full acquisition ready

Snapshot

Watts Water Technologies acquired AERCO International, Inc. for $264.5 million in cash (on a debt/cash free basis, subject to working capital adjustment) in December 2014. The transaction was structured as all cash (funded with borrowings under credit facility). AERCO International, Inc. is a Blauvelt, New York, USA-based Americas business.

Acquirer
Watts Water Technologies
Target
AERCO International, Inc.
Value
$264.5 million in cash (on a debt/cash free basis, subject to working capital adjustment)
Date
December 2014
Type
full acquisition
Status
ready
01 Scorecard

The deal at a glance

Private-market deal
Watts Water Technologies acquires AERCO International, Inc.
Deal value
$264.5 million in cash (on a debt/cash free basis, subject to working capital adjustment)
Sector
Americas
Date
December 2014
VectorShift
Made on VectorShift

About this deal

Watts Water Technologies acquired AERCO International, Inc. for $264.5 million in cash (on a debt/cash free basis, subject to working capital adjustment), a transaction completed in December 2014, structured as all cash (funded with borrowings under credit facility).

AERCO International, Inc. operates in Americas, is based in Blauvelt, New York, USA, had revenue of about approximately $100 million trailing twelve months sales (through September 2014). Blauvelt, New York-based manufacturer of a wide range of high-efficiency commercial boilers and water heaters, distributed primarily in the United States for commercial markets; a portfolio entity of The Riverside Company. Trailing twelve months sales approximated $100 million.

Acquiring AERCO will allow us to expand our product breadth to the strategically important adjacency of heat and hot water offerings. AERCO is a recognized leader in the fast growing market for high efficiency boilers and hot water heaters, with solid operating margins and attractive opportunities to continue its strong growth.

Acquiring AERCO will allow us to expand our product breadth to the strategically important adjacency of heat and hot water offerings. AERCO is a recognized leader in the fast growing market for high efficiency boilers and hot water heaters, with solid operating margins and attractive opportunities to continue its strong growth. AERCO's products complement our existing portfolio, strengthening our ability to provide a total solution for our customers. With our existing international footprint, we also anticipate expanding AERCO's worldwide presence.
Robert J. Pagano Jr., Chief Executive Officer, Watts Water Technologies
Advisors not disclosed

No advisory firms have been disclosed for this transaction.

Sources Press releaseSEC filing Last updated

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