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
Advisory firms were not disclosed for this transaction.