Watts Water Technologies to acquire Blücher Metal A/S
Watts Water Technologies has signed an agreement to acquire Blücher Metal A/S in a share purchase transaction. Blücher Metal is a provider of stainless steel drainage systems in Europe and a worldwide provider of stainless steel drainage products to the marine industry. Its main products include push-fit stainless steel pipes and related fittings, light-duty drains for residential, commercial and marine applications, and drains for heavy-duty industrial applications...
NORTH ANDOVER, MA, April 9, 2008 -- Watts Water Technologies Inc. announced the signing of a definitive agreement to acquire Blücher Metal A/S located in Vildbjerg, Denmark, in a share purchase transaction.
Watts Water Technologies' Chief Executive Officer, Patrick S. O'Keefe, commented, "Blücher Metal A/S is a leading provider of stainless steel drainage systems in Europe and a worldwide leader in providing stainless steel drainage products to the marine industry. Blücher's main products include push-fit stainless steel pipes and related fittings, light-duty drains for residential, commercial and marine applications, and drains for heavy-duty industrial applications including brewery and pharmaceutical applications."
O'Keefe continued, "We are extremely pleased with the acquisition of Blücher. Blücher is a well-managed company with a strong brand name. Blücher provides us a new product platform in Europe while allowing us to offer a broader product line to our existing professional customer base."
Blücher's annual revenue for 2007 was approximately $89 million. Under the terms of the purchase agreement, Watts will pay approximately $183 million in cash to purchase 100% of the share capital of Blücher on a debt/cash free basis, subject to a post-closing working capital adjustment. The above revenue and purchase price amounts are based on the current exchange rate of Danish Krone to U.S. Dollars. Watts intends to fund the transaction with borrowings under its credit facility and cash on hand.
The acquisition of Blücher is expected to close by the end of the second quarter of 2008. The consummation of the acquisition is subject to customary closing conditions, including the approval of merger control authorities in Europe.
Watts Water Technologies Inc. will hold a live web cast of its conference call to discuss the acquisition of Blücher on Thursday, April 10 at 10:00 a.m. Eastern time. The press release and the live web cast can be accessed by visiting the Investor Relations section of the Watts Water Technologies Inc. website at www.wattswater.com. Following the web cast, an archived version of the call will be available at the same address until April 10, 2009.
Watts Water Technologies Inc. is a world leader in the manufacture of innovative products to control the efficiency, safety, and quality of water within residential, commercial, and institutional applications.